The only way is down when it comes to Wolvey lease terms. Wolvey properties that have a residual term less than than eighty years will drop in value even faster, and the cost to extend your lease will rise.
Leasehold properties in Wolvey with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Wolvey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Lewis, came perilously near to the eighty-year threshold with the lease on his studio flat in Wolvey. In buying his home two decades ago, the lease term was of little interest. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Lewis was able to extend his lease at the eleventh hour in May. Lewis and the freeholder via the managing agents in the end settled on sum of £5,500 . If the lease had slid to less than 80 years, the price would have become more exhorbitant by at least £950.
In 2013 we were phoned by Mr and Mrs. G Cox who, having purchased a one bedroom flat in Wolvey in May 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Wolvey with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2105. Given that there were 80 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2010 we were called by Mrs Abbie Stewart who, having completed a one bedroom flat in Wolvey in July 2003. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Wolvey with a long lease were in the region of £275,000. The average ground rent payable was £45 billed every twelve months. The lease ended in 2094. Given that there were 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.