It’s a harsh certainty that a Wragby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wragby property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Wragby will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Wragby with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Wragby leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Toby, started to get close to the 80-year threshold with the lease on his leasehold apartment in Wragby. In buying his property two decades ago, the unexpired term was of little significance. Thankfully, he realised he needed to take steps soon on a lease extension. Toby was able to extend his lease just ahead of time last September. Toby and the freeholder ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £950.
In 2009 we were approached by Dr Omar Nelson who, having was assigned a lease of a first floor apartment in Wragby in September 2010. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative homes in Wragby with a long lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 27 October 2091. Considering the 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including legals.
Last month we were phoned by Mrs T Hall , who completed a recently refurbished apartment in Wragby in September 2000. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar premises in Wragby with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease termination date was in 2080. Given that there were 55 years unexpired we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus expenses.