Unfortunately that a Wombwell residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Wombwell property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Wombwell will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Wombwell with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Wombwell can be a difficult process. We recommend you obtain professional help 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 procuring Wombwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Tyler, started to get near to the 80-year threshold with the lease on his one bedroom flat in Wombwell. Having purchased his flat two decades ago, the unexpired term was of little importance. Fortunately, he realised he needed to take steps soon on a lease extension. Tyler extended the lease just under the wire in March. Tyler and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £850.
In 2013 we were e-mailed by Ms Mia López who, having moved into a first floor flat in Wombwell in June 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Wombwell with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 21 September 2085. Considering the 60 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Dr Jacob Lefebvre owned a first floor flat in Wombwell in June 2008. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Wombwell with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 28 August 2096. Given that there were 71 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.