Wragby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Wragby tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Wragby you should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wragby can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Wragby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the landlord of her one bedroom flat in Wragby, Ashleigh initiated the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work completed in November 2012. The freeholder’s costs were negotiated to under 700 pounds.
Mr and Mrs. F Gunderson was assigned a lease of a one bedroom apartment in Wragby in August 1995. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Identical residencies in Wragby with a long lease were worth £275,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended in 2095. Given that there were 69 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
Last Summer we were e-mailed by Mrs Chloe Moreau , who purchased a studio apartment in Wragby in October 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Wragby with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 billed monthly. The lease termination date was on 1 January 2084. Taking into account 58 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.