When it comes to long leasehold property in Wroughton, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Leasehold owners in Wroughton with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
The lawyers that we work with procure Wroughton 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.
After lengthy correspondence with the landlord of her purpose-built flat in Wroughton, Harriet started the lease extension process as the 80 year mark was rapidly approaching. The legal work was finalised in June 2012. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were phoned by Mr Joshua Ward who, having bought a purpose-built flat in Wroughton in February 2007. The question was if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Wroughton with 100 year plus lease were valued about £200,800. The mid-range amount of ground rent was £65 billed annually. The lease expiry date was in 2086. Given that there were 60 years remaining we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus expenses.
Mr Theo Miller owned a basement flat in Wroughton in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative properties in Wroughton with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed every twelve months. The lease finished in 2097. Taking into account 71 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.