Wolvey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Wolvey tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Wolvey you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Wolvey flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wolvey can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Wolvey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Kai, came dangerously near to the eighty-year threshold with the lease on his first floor flat in Wolvey. Having bought his home 18 years previously, the length of the lease was of no importance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Kai extended the lease just under the wire in August. Kai and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had dropped to less than 80 years, the price would have gone up by at least £975.
In 2013 we were contacted by Mr Evan Rivera who, having was assigned a lease of a recently refurbished apartment in Wolvey in May 2012. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Wolvey with an extended lease were worth £300,000. The average ground rent payable was £50 collected every twelve months. The lease terminated in 2101. Given that there were 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Mr Finley López completed a newly refurbished apartment in Wolvey in March 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Wolvey with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease terminated in 2090. Having 64 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.