Wolvey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Wolvey tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Wolvey you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Wolvey leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Wolvey with over one hundred years left on the lease are often 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Wolvey leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months George, came perilously close to the 80-year mark with the lease on his garden apartment in Wolvey. In buying his home two decades ago, the unexpired term was of little concern. Thankfully, it dawned on him that he needed to take action soon on a lease extension. George arranged for a lease extension at the eleventh hour last March. George and the landlord in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £975.
In 2011 we were phoned by Dr William Garcia who, having moved into a one bedroom apartment in Wolvey in April 2008. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative flats in Wolvey with a long lease were valued around £280,000. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 3 March 2096. Taking into account 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2014 we were contacted by Mr R Moore who, having owned a purpose-built flat in Wolvey in September 2000. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative residencies in Wolvey with a long lease were valued around £223,400. The mid-range ground rent payable was £60 billed yearly. The lease terminated in 2085. Taking into account 59 years remaining we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.