Chances are that if you own a flat in Wombwell you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with handle Wombwell 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 lawyer we work with provide it.
Alfie was the the leasehold owner of a studio apartment in Wombwell being sold with a lease of just over sixty years left. Alfie informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Last Spring we were called by Mr and Mrs. T Howard , who moved into a purpose-built flat in Wombwell in July 2006. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Wombwell with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 7 September 2095. Taking into account 69 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were approached by Ms C Dupont who, having purchased a one bedroom flat in Wombwell in October 2004. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Wombwell with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 8 November 2106. Having 80 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.