With a residential leasehold premises in Wragby, you are actually buying a right to live in a property for a set 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 long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Anyone in Wragby with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the current statute the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Wragby,the lease extension lawyers 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 Wragby valuers.
Zachary owned a studio flat in Wragby on the market with a lease of just over fifty eight years outstanding. Zachary on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2013 we were called by Mr and Mrs. Y Edwards who, having bought a garden apartment in Wragby in April 1996. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable flats in Wragby with a long lease were valued about £285,000. The average ground rent payable was £45 billed annually. The lease came to a finish on 16 May 2097. Having 71 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Mr and Mrs. F Rivera completed a recently refurbished flat in Wragby in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar properties in Wragby with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 billed every twelve months. The lease concluded on 18 January 2086. Taking into account 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus expenses.