On the balance of probabilities if you own a flat in Wolverton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with handle Wolverton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Twenty four months ago Blake, came precariously close to the 80-year mark with the lease on his basement flat in Wolverton. In buying his property twenty years previously, the length of the lease was of minimal importance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Blake was able to extend his lease at the eleventh hour last April. Blake and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If the lease had gone below 80 years, the figure would have become more costly by a minimum £1,075.
Mr and Mrs. E Clark acquired a garden apartment in Wolverton in September 1997. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable properties in Wolverton with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 billed annually. The lease ran out on 22 July 2102. Having 76 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
In 2010 we were called by Mr and Mrs. R Mason who, having bought a studio apartment in Wolverton in October 2008. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Wolverton with an extended lease were worth £176,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed on 18 July 2082. Considering the 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus fees.