As the the remaining lease term of a Wolverton residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Wolverton will qualify for this right; however a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Wolverton with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
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.
Felix owned a conversion flat in Wolverton being marketed with a lease of a little over fifty eight years left. Felix informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mrs Olivia Davis was assigned a lease of a purpose-built apartment in Wolverton in July 2008. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar properties in Wolverton with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out in 2106. Considering the 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2014 we were called by Mrs Emma Martínez who, having was assigned a lease of a basement flat in Wolverton in July 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable properties in Wolverton with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 collected yearly. The lease ended in 2086. Given that there were 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of fees.