On the balance of probabilities where you own a flat in Wolviston you actually own a long leasehold interest over your property
Leasehold residencies in Wolviston with more than one hundred years remaining 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Wolviston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wolviston valuers.
Following unsuccessful discussions with the freeholder of her two bedroom flat in Wolviston, Alice initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work was finalised in January 2009. The freeholder’s charges were kept to an absolute minimum.
Dr B Ramírez moved into a one bedroom apartment in Wolviston in October 1998. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar residencies in Wolviston with an extended lease were valued around £213,600. The average ground rent payable was £60 billed annually. The lease expired on 11 August 2082. Given that there were 57 years remaining we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus legals.
In 2014 we were called by Mr and Mrs. U Alexander who, having was assigned a lease of a basement flat in Wolviston in February 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar residencies in Wolviston with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded in 2102. Considering the 77 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.