For those whose Wolviston home is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Wolviston with in excess of 100 years left on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wolviston can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Wolviston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Aaron, started to get near to the eighty-year threshold with the lease on his basement apartment in Wolviston. In buying his property twenty years previously, the length of the lease was of minimal concern. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Aaron arranged for a lease extension just under the wire in January. Aaron and the landlord eventually settled on an amount of £6,000 . If the lease had gone lower than 80 years, the sum would have increased by at least £925.
Last Christmas we were contacted by Mrs S Moreau , who was assigned a lease of a basement apartment in Wolviston in March 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Wolviston with a long lease were worth £275,000. The average amount of ground rent was £65 billed quarterly. The lease ended in 2093. Considering the 68 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last month we were approach by Dr L Phillips , who took over the lease of a purpose-built apartment in Wolviston in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Wolviston with a long lease were valued about £213,600. The mid-range ground rent payable was £60 collected per annum. The lease finished on 5 November 2082. Considering the 57 years remaining we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.