Wombwell leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wombwell will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Wombwell leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her leasehold flat in Wombwell, Jordan initiated the lease extension process as the 80 year deadline was quickly nearing. The transaction was concluded in August 2013. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. P Jones , who purchased a ground floor flat in Wombwell in March 2004. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in Wombwell with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 invoiced yearly. The lease terminated in 2105. Given that there were 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Last month we were phoned by Ms Harriet Sharif , who owned a first floor flat in Wombwell in February 2010. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative premises in Wombwell with an extended lease were worth £193,400. The average amount of ground rent was £65 collected quarterly. The lease came to a finish on 4 January 2085. Taking into account 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.