For anyone whose Wraysbury property is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
Leasehold residencies in Wraysbury with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Wraysbury can be a difficult process. We recommend you obtain guidance 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 procuring Wraysbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad owned a 2 bedroom flat in Wraysbury being sold with a lease of just over 59 years outstanding. Muhammad informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last year we were called by Mr and Mrs. K Howard , who completed a newly refurbished apartment in Wraysbury in January 2005. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Wraysbury with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2076. Considering the 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus costs.
In 2014 we were called by Mr and Mrs. D Peterson who, having acquired a ground floor flat in Wraysbury in February 1997. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Wraysbury with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired on 22 March 2087. Given that there were 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.