Wooler leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Wooler will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Wooler with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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 are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you increased control over the value of your Wooler leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Omar, came dangerously near to the eighty-year mark with the lease on his leasehold flat in Wooler. In buying his flat two decades ago, the lease term was of no importance. by good luck, he became aware that he would soon be paying an inflated amount for Extending the lease. Omar arranged for a lease extension at the eleventh hour in January. Omar and the landlord in the end agreed on an amount of £5,000 . If he not met the deadline, the price would have become more costly by at least £925.
Mr and Mrs. L Sánchez owned a newly refurbished apartment in Wooler in November 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Wooler with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended on 13 January 2088. Taking into account 62 years unexpired we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.
Last Christmas we were called by Mr and Mrs. A Bernard , who owned a purpose-built apartment in Wooler in June 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Wooler with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated in 2099. Given that there were 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.