The nearer a residential lease in Wolverton nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Wolverton will meet the qualifying criteria; that being said a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wolverton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Wolverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the landlord of her leasehold flat in Wolverton, Caitlin commenced the lease extension process as the 80 year deadline was swiftly approaching. The legal work was finalised in September 2015. The freeholder’s charges were restricted to below 450 GBP.
Dr Theo Hill owned a studio apartment in Wolverton in January 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical homes in Wolverton with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2096. Given that there were 71 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Autumn we were called by Dr Daniel Reed , who completed a garden flat in Wolverton in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Wolverton with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed annually. The lease expired on 16 April 2076. Having 51 years remaining we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.