Wolvey leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher amount will be due. Flat owners in Wolvey will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Wolvey with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Wolvey,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wolvey valuers.
After protracted discussions with the freeholder of her first floor apartment in Wolvey, Alisha started the lease extension process as the eighty year deadline was quickly nearing. The legal work was concluded in March 2005. The freeholder’s charges were restricted to about 500 GBP.
Mrs T Ramírez bought a garden flat in Wolvey in June 2008. 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 flats in Wolvey with a long lease were valued around £275,000. The average amount of ground rent was £65 collected annually. The lease lapsed on 27 March 2093. Taking into account 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
In 2009 we were e-mailed by Mr C Dupont who, having owned a first floor apartment in Wolvey in June 2005. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable premises in Wolvey with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded on 17 August 2082. Considering the 57 years unexpired we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.