With a residential leasehold premises in Wolviston, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Residents in Wolviston with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Wolviston with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancers 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 lawyer we work with provide it.
Michael was the the leasehold owner of a studio apartment in Wolviston being sold with a lease of a few days over 72 years remaining. Michael on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Michael to exercise his statutory right. Michael obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last Spring we were phoned by Ms Jennifer Howard , who acquired a basement flat in Wolviston in January 2001. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical residencies in Wolviston with an extended lease were valued around £184,000. The average amount of ground rent was £55 billed annually. The lease ran out on 20 May 2079. Given that there were 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Mr and Mrs. J Campbell took over the lease of a studio apartment in Wolviston in January 2011. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Wolviston with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out in 2099. Taking into account 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.