With a long leasehold property in Wooler, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Wooler with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Wooler can be a difficult process. We recommend you obtain guidance from a lawyer 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 dealing with Wooler lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her studio flat in Wooler, Ellen started the lease extension process as the eighty year mark was fast coming. The transaction completed in February 2005. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. G Sánchez , who owned a purpose-built apartment in Wooler in November 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Wooler with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed in 2099. Having 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Dr Eli Lee bought a ground floor flat in Wooler in June 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Wooler with an extended lease were in the region of £166,400. The average amount of ground rent was £60 billed yearly. The lease elapsed on 28 January 2079. Having 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.