Wolviston 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. Most owners of residential leasehold property in Wolviston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wolviston you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Wolviston 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 conveyancing solicitor we work with provide it.
Trailing protracted discussions with the freeholder of her studio apartment in Wolviston, Natalie commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work was finalised in July 2005. The landlord’s charges were kept to an absolute minimum.
Last January we were contacted by Dr Eleanor Scott , who took over the lease of a newly refurbished apartment in Wolviston in January 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Wolviston with a long lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease end date was in 2090. Taking into account 65 years remaining we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus expenses.
In 2013 we were approached by Dr Edward Watson who, having moved into a studio flat in Wolviston in August 2012. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable flats in Wolviston with an extended lease were worth £196,400. The average ground rent payable was £55 invoiced every twelve months. The lease end date was in 2079. Taking into account 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £35,200 and £40,600 not including costs.