Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Wombwell. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Wombwell have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful attention before putting off your Wombwell lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Wombwell with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
Lease extensions in Wombwell can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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.
Last October Arthur, came dangerously close to the 80-year threshold with the lease on his garden apartment in Wombwell. In buying his home two decades ago, the length of the lease was of minimal importance. Thankfully, he became aware that he needed to take action soon on Extending the lease. Arthur was able to extend his lease just in the nick of time last January. Arthur and the landlord eventually settled on a premium of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £925.
Last Spring we were e-mailed by Mr Jacob Bonnet , who bought a first floor flat in Wombwell in January 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Wombwell with a long lease were in the region of £264,000. The average ground rent payable was £60 collected yearly. The lease elapsed on 2 November 2078. Having 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.
In 2009 we were e-mailed by Mr and Mrs. N Torres who, having completed a ground floor apartment in Wombwell in January 2004. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Wombwell with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 28 August 2089. Taking into account 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of costs.