The value of Wombourne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than 80 years
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Wombourne,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wombourne valuers.
Last year Zachary, came perilously near to the 80-year mark with the lease on his first floor apartment in Wombourne. In buying his property two decades ago, the lease term was of no concern. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Zachary extended the lease at the eleventh hour in May. Zachary and the landlord ultimately settled on sum of £5,500 . If the lease had fallen below eighty years, the premium would have increased by at least £950.
Mrs Kirsty Brown acquired a first floor flat in Wombourne in March 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar residencies in Wombourne with a long lease were valued about £200,800. The average ground rent payable was £65 collected per annum. The lease ran out in 2085. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.
Last Autumn we were approach by Dr V Moreau , who purchased a first floor apartment in Wombourne in June 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative properties in Wombourne with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was on 4 June 2096. Given that there were 71 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.