Wombourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Wombourne residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wombourne you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you increased control over the value of your Wombourne leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the landlord of her leasehold apartment in Wombourne, Bethan initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The lease extension was finalised in February 2011. The landlord’s charges were negotiated to approximately 550 GBP.
In 2014 we were e-mailed by Ms G Robinson who, having owned a one bedroom flat in Wombourne in June 2002. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Wombourne with an extended lease were valued about £210,600. The average ground rent payable was £45 invoiced yearly. The lease terminated on 25 November 2088. Taking into account 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.
Mr and Mrs. V González took over the lease of a studio apartment in Wombourne in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Wombourne with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease termination date was on 15 January 2099. Having 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.