When it comes to domestic leasehold property in Wooler, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than 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 fewer than eighty years remaining. Leasehold owners in Wooler with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 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 decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luca, came precariously near to the 80-year threshold with the lease on his basement flat in Wooler. In buying his flat 18 years ago, the length of the lease was of little importance. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Luca extended the lease just under the wire in June. Luca and the landlord ultimately settled on a premium of £6,000 . If the lease had slid lower than eighty years, the sum would have escalated by a minimum £1,025.
Mr and Mrs. J Ramírez completed a garden apartment in Wooler in March 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Wooler with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease elapsed on 14 July 2090. Considering the 64 years unexpired we estimated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.
Last Summer we were contacted by Mr and Mrs. F Martin , who took over the lease of a one bedroom flat in Wooler in November 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Wooler with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2101. Considering the 75 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.