On the balance of probabilities if you own a flat in Wragby you actually own a long leasehold interest over your property
Leasehold properties in Wragby with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The lawyers that we work with handle Wragby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Christmas Henry, came perilously close to the 80-year threshold with the lease on his purpose- built flat in Wragby. Having purchased his property 19 years ago, the unexpired term was of little significance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Henry extended the lease at the eleventh hour in June. Henry and the landlord subsequently agreed on an amount of £5,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £850.
Mr and Mrs. M King owned a one bedroom apartment in Wragby in May 2011. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Wragby with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 invoiced monthly. The lease finished in 2079. Given that there were 54 years outstanding we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.
In 2012 we were e-mailed by Mr and Mrs. F Thompson who, having purchased a one bedroom apartment in Wragby in August 2002. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Wragby with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired in 2099. Having 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.