Wombourne leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Wombourne residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wombourne you would be well advised to check if your lease has between seventy and 90 years remaining. There are good reasons why a Wombourne flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Wombourne leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her garden apartment in Wombourne, Rosie initiated the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction was finalised in July 2011. The freeholder’s charges were restricted to slightly above 450 GBP.
Last month we were phoned by Mr Y Johnson , who acquired a basement apartment in Wombourne in October 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative properties in Wombourne with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease finished in 2104. Considering the 79 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.
Mr and Mrs. S Gómez acquired a ground floor apartment in Wombourne in June 2009. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Wombourne with an extended lease were in the region of £193,400. The average ground rent payable was £65 collected yearly. The lease ended in 2084. Taking into account 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.