Wolverton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Flat owners in Wolverton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Wolverton with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Wolverton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wolverton valuers.
Half a year ago Toby, came critically close to the eighty-year mark with the lease on his garden apartment in Wolverton. Having purchased his property twenty years ago, the unexpired term was of no bearing. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Toby arranged for a lease extension just ahead of time last March. Toby and the landlord who owned the flat above eventually settled on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,025.
Last Autumn we were approach by Mr and Mrs. I Nguyen , who bought a studio apartment in Wolverton in April 2005. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical properties in Wolverton with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 billed yearly. The lease expired on 5 August 2092. Having 66 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Mrs A Young purchased a first floor apartment in Wolverton in March 2005. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar premises in Wolverton with a long lease were valued around £275,000. The average ground rent payable was £55 billed yearly. The lease lapsed on 7 March 2103. Given that there were 77 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.