It’s an underpublicised truth that a Wombwell residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Wombwell property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Wombwell will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Wombwell,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wombwell valuers.
During the course of the last few months Nathaniel, came critically close to the eighty-year threshold with the lease on his one bedroom apartment in Wombwell. Having bought his flat twenty years ago, the unexpired term was of little interest. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Nathaniel arranged for a lease extension just in the nick of time in January. Nathaniel and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If the lease had descended to less than 80 years, the figure would have increased by a minimum £1,050.
Last Christmas we were e-mailed by Mr and Mrs. F Jackson , who bought a garden flat in Wombwell in September 2012. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable properties in Wombwell with an extended lease were in the region of £246,800. The average amount of ground rent was £60 collected annually. The lease ran out on 24 March 2076. Given that there were 50 years left we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus expenses.
Dr D Gómez completed a one bedroom apartment in Wombwell in July 2002. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar premises in Wombwell with 100 year plus lease were worth £208,200. The mid-range amount of ground rent was £65 collected yearly. The lease termination date was in 2087. Considering the 61 years left we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.