Wroxham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Wroxham tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Wroxham you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Wroxham with in excess of 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Wroxham can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with Wroxham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Felix, came very near to the 80-year mark with the lease on his purpose- built flat in Wroxham. In buying his home two decades ago, the unexpired term was of little importance. by good luck, he realised he needed to take action soon on Extending the lease. Felix arranged for a lease extension just in the nick of time in January. Felix and the landlord ultimately settled on a premium of £6,000 . If the lease had slid lower than eighty years, the sum would have escalated by at least £925.
In 2009 we were contacted by Mr H Patel who, having completed a newly refurbished apartment in Wroxham in October 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Wroxham with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 billed yearly. The lease ended in 2097. Taking into account 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last August we were contacted by Mr and Mrs. S Khan , who took over the lease of a one bedroom apartment in Wroxham in November 1995. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Wroxham with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed on 10 April 2077. Given that there were 51 years remaining we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of fees.