Unfortunately that a Wolviston residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wolviston property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of flat owners in Wolviston will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Wolviston with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|Virgin|| 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Wolviston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wolviston valuers.
Last year David, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Wolviston. Having bought his home twenty years previously, the lease term was of little bearing. Thankfully, he realised he needed to take steps soon on a lease extension. David arranged for a lease extension just in the nick of time last August. David and the landlord subsequently agreed on sum of £5,000 . If the lease had fallen below eighty years, the premium would have escalated by a minimum £850.
Last Autumn we were e-mailed by Mrs Yasmin Wood , who purchased a one bedroom flat in Wolviston in May 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable flats in Wolviston with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease termination date was in 2081. Given that there were 61 years unexpired we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of legals.
In 2009 we were phoned by Dr Benjamin Morel who, having owned a studio apartment in Wolviston in October 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Wolviston with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish on 14 May 2070. Taking into account 50 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.