On the balance of probabilities if you own a flat in Wool you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
Using our service gives you enhanced control over the value of your Wool leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her studio apartment in Wool, Abigail started the lease extension process as the 80 year mark was rapidly approaching. The lease extension was concluded in June 2012. The landlord’s fees were kept to an absolute minimum.
In 2013 we were approached by Ms Georgia Vincent who, having bought a newly refurbished apartment in Wool in November 1997. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical premises in Wool with 100 year plus lease were valued around £242,600. The average ground rent payable was £45 billed monthly. The lease came to a finish in 2092. Given that there were 67 years left we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Last month we were called by Mr and Mrs. G Brooks , who took over the lease of a first floor flat in Wool in October 2012. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical residencies in Wool with an extended lease were valued about £280,000. The average amount of ground rent was £55 billed annually. The lease expiry date was in 2103. Given that there were 78 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.