Wroxham residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold properties in Wroxham with over 100 years remaining on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Wroxham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wroxham valuers.
Last Winter Jamie, started to get close to the 80-year threshold with the lease on his leasehold apartment in Wroxham. Having purchased his property 19 years ago, the lease term was of no significance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Jamie was able to extend his lease at the eleventh hour in June. Jamie and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If the lease had dipped to less than eighty years, the sum would have gone up by at least £875.
Last Winter we were approach by Mr and Mrs. J Harris , who moved into a first floor apartment in Wroxham in August 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Wroxham with an extended lease were valued about £250,000. The average ground rent payable was £50 collected annually. The lease ran out on 25 May 2095. Having 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
Last Winter we were called by Mr and Mrs. E Mitchell , who acquired a one bedroom flat in Wroxham in April 2000. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Wroxham with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 collected quarterly. The lease end date was in 2106. Having 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.