Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wrington. Clearly, the period of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Wrington have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. You should give due deliberation before delaying your Wrington lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Wrington with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Wrington can be a difficult process. We recommend you get guidance from a conveyancer 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 Wrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Kai, came dangerously close to the eighty-year threshold with the lease on his leasehold apartment in Wrington. Having purchased his flat two decades ago, the length of the lease was of little bearing. Luckily, he realised he needed to take steps soon on Extending the lease. Kai arranged for a lease extension just under the wire in May. Kai and the landlord ultimately settled on the final figure of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £900.
Mr T Martínez was assigned a lease of a garden apartment in Wrington in September 2012. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Wrington with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease finished on 22 February 2077. Having 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.
In 2013 we were called by Dr J Wright who, having owned a ground floor apartment in Wrington in April 1997. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative flats in Wrington with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced yearly. The lease ended in 2097. Taking into account 71 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.