Chances are that if you own a flat in Wolvey you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining 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 many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Wolvey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Alexander was the the leasehold owner of a 2 bedroom flat in Wolvey on the market with a lease of a little over 61 years outstanding. Alexander informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr N Collins was assigned a lease of a purpose-built flat in Wolvey in January 2008. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Wolvey with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed on 15 October 2103. Given that there were 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Mr and Mrs. E Bell took over the lease of a recently refurbished flat in Wolvey in June 2004. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Wolvey with a long lease were worth £260,200. The mid-range amount of ground rent was £65 collected monthly. The lease finished on 17 April 2092. Taking into account 66 years unexpired we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of legals.