Woore residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold premises in Woore with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Woore,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woore valuers.
Kian owned a 2 bedroom apartment in Woore on the market with a lease of fraction over fifty eight years left. Kian informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr K Mason owned a basement apartment in Woore in June 2012. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Woore with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 billed annually. The lease lapsed on 6 June 2086. Given that there were 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus expenses.
Mrs F García bought a first floor flat in Woore in February 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Woore with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2097. Taking into account 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.