The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wrington can extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Wrington lease extension. Postponing that expense now simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold premises in Wrington with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Wrington 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 conveyancer we work with provide it.
Half a year ago Owen, started to get near to the 80-year mark with the lease on his studio flat in Wrington. Having purchased his property 18 years ago, the length of the lease was of no importance. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Owen was able to extend his lease at the eleventh hour in January. Owen and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he not met the deadline, the premium would have gone up by at least £1,050.
Last Summer we were contacted by Mr Michael Harris , who completed a recently refurbished apartment in Wrington in October 2007. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Similar flats in Wrington with an extended lease were valued around £210,000. The average ground rent payable was £50 billed quarterly. The lease terminated on 17 July 2106. Having 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Christmas we were phoned by Mr and Mrs. I Khan , who took over the lease of a ground floor apartment in Wrington in October 2005. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Wrington with 100 year plus lease were valued around £275,000. The average ground rent payable was £45 invoiced quarterly. The lease ran out on 1 February 2095. Having 69 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.