Wroughton leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Wroughton will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Wroughton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wroughton can be a difficult process. We recommend you procure 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 Wroughton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Isaac, started to get close to the 80-year mark with the lease on his leasehold apartment in Wroughton. Having bought his property two decades ago, the unexpired term was of no relevance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Isaac was able to extend his lease just under the wire in May. Isaac and the freeholder in the end agreed on an amount of £5,000 . If the lease had fallen lower than eighty years, the premium would have escalated by a minimum £1,100.
In 2012 we were approached by Mr and Mrs. D Rivera who, having purchased a newly refurbished flat in Wroughton in July 2010. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Wroughton with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 collected quarterly. The lease terminated on 10 November 2088. Given that there were 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.
Mr and Mrs. U Moreau acquired a studio apartment in Wroughton in May 2001. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Wroughton with an extended lease were valued around £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease lapsed on 7 July 2099. Given that there were 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.