When it comes to domestic leasehold premises in Wooler, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years remaining. Leasehold owners in Wooler with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below 80 years remaining, under the current legislation the landlord can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Wooler,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 Wooler valuers.
Following lengthy discussions with the landlord of her one bedroom flat in Wooler, Courtney commenced the lease extension process as the 80 year deadline was swiftly approaching. The transaction was concluded in November 2013. The landlord’s charges were kept to an absolute minimum.
Dr N Campbell owned a first floor flat in Wooler in September 2003. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Wooler with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated on 4 June 2092. Taking into account 67 years remaining we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.
In 2010 we were phoned by Dr Kyle Stewart who, having took over the lease of a recently refurbished apartment in Wooler in May 2000. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Wooler with a long lease were valued about £280,000. The average amount of ground rent was £55 billed per annum. The lease finished on 12 August 2103. Considering the 78 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.