Wroughton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Wroughton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wroughton you really ought to check if your lease has between seventy and ninety years left. There are good reasons why a Wroughton leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Wroughton with over 100 years remaining on the lease are often 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 buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Wroughton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wroughton valuers.
Two years ago Tommy, came precariously near to the eighty-year threshold with the lease on his first floor flat in Wroughton. In buying his property two decades ago, the length of the lease was of no significance. Fortunately, he realised he needed to take steps soon on a lease extension. Tommy arranged for a lease extension at the eleventh hour in March. Tommy and the landlord in the end settled on an amount of £5,500 . If the lease had slid below eighty years, the amount would have escalated by a minimum £975.
Dr Jasper Brooks completed a one bedroom apartment in Wroughton in February 2012. The question was if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Wroughton with an extended lease were in the region of £265,000. The average ground rent payable was £50 invoiced per annum. The lease end date was on 8 February 2100. Considering the 74 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2009 we were e-mailed by Mr and Mrs. B Peterson who, having moved into a studio flat in Wroughton in June 1999. The question was if we could estimate the price would be for a 90 year extension to my lease. Similar homes in Wroughton with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected annually. The lease expired on 2 September 2080. Taking into account 54 years left we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.