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 the lease gets more expensive. It is the case that most Wroxham tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Wroxham you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Wroxham flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in Wroxham with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Wroxham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wroxham valuers.
After protracted negotiations with the freeholder of her two bedroom apartment in Wroxham, Nicole started the lease extension process just as the lease was approaching the critical eighty-year mark. The lease extension was finalised in October 2005. The freeholder’s fees were negotiated to a tad over 600 GBP.
Last February we were approach by Mr and Mrs. C Flores , who took over the lease of a ground floor flat in Wroxham in October 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical homes in Wroxham with a long lease were valued about £198,400. The mid-range ground rent payable was £65 billed annually. The lease finished on 28 February 2085. Taking into account 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
Ms M Adams completed a one bedroom apartment in Wroxham in August 1997. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable premises in Wroxham with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out in 2096. Taking into account 70 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.