With a domestic leasehold property in Wragby, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy 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 increases markedly particularly once there are less than 80 years left. Residents in Wragby with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Wragby with more than 100 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 year Jasper, started to get close to the eighty-year threshold with the lease on his ground floor flat in Wragby. Having purchased his flat 19 years previously, the lease term was of little bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Jasper was able to extend his lease just under the wire last June. Jasper and the freeholder in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have become more costly by a minimum £925.
Last Spring we were e-mailed by Mr T Ramírez , who was assigned a lease of a purpose-built apartment in Wragby in July 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Wragby with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 collected yearly. The lease finished on 16 March 2084. Considering the 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of fees.
Mr Adam Sánchez acquired a first floor flat in Wragby in March 1996. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical homes in Wragby with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed in 2104. Considering the 79 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.