Wrington leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wrington will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with procure 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.
Subsequent to lengthy negotiations with the freeholder of her one bedroom flat in Wrington, Hannah commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in February 2008. The freeholder’s costs were kept to an absolute minimum.
Dr Tyler Baker was assigned a lease of a studio flat in Wrington in February 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Wrington with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2098. Given that there were 73 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last August we were e-mailed by Mr and Mrs. E Watson , who took over the lease of a ground floor apartment in Wrington in July 1998. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Wrington with an extended lease were valued about £235,600. The mid-range amount of ground rent was £60 collected yearly. The lease came to a finish in 2087. Having 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.