Wolviston leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Wolviston will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 lawyers that we work with handle 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 conveyancer we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her ground floor apartment in Wolviston, Nicole initiated the lease extension process as the 80 year mark was swiftly nearing. The transaction was finalised in February 2006. The landlord’s charges were negotiated to slightly above 500 pounds.
Last Winter we were called by Mr and Mrs. V Kelly , who was assigned a lease of a recently refurbished flat in Wolviston in September 1999. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical premises in Wolviston with an extended lease were in the region of £290,000. The average amount of ground rent was £45 invoiced yearly. The lease terminated on 2 May 2097. Given that there were 72 years left we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus legals.
Ms U Jackson took over the lease of a ground floor flat in Wolviston in August 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Wolviston with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 24 July 2086. Taking into account 61 years left we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of expenses.