The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wolverton can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Wolverton lease extension. Postponing the costs today simply increases the amount you will eventually have to pay for a lease extension.
Leasehold premises in Wolverton with more than one hundred years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Wolverton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a 2 bedroom flat in Wolverton on the market with a lease of a little over fifty eight years outstanding. Ollie on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2012 we were called by Dr D Carter who, having took over the lease of a ground floor apartment in Wolverton in June 2010. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar homes in Wolverton with a long lease were in the region of £256,600. The average amount of ground rent was £60 collected every twelve months. The lease lapsed in 2077. Given that there were 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of expenses.
Last Summer we were called by Dr G Wood , who acquired a garden flat in Wolverton in June 1997. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparative properties in Wolverton with a long lease were valued about £218,000. The average ground rent payable was £45 collected annually. The lease lapsed in 2088. Considering the 63 years outstanding we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.