When it comes to long leasehold premises in Wylam, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years left. Anyone in Wylam with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has below eighty years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| 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 |
Retaining our service will provide you better control over the value of your Wylam leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Alex, came precariously close to the eighty-year mark with the lease on his two bedroom apartment in Wylam. In buying his property twenty years ago, the unexpired term was of no importance. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Alex arranged for a lease extension just under the wire in March. Alex and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If the lease had slipped lower than 80 years, the sum would have increased by a minimum £1,075.
In 2009 we were approached by Mr and Mrs. O Cook who, having completed a first floor flat in Wylam in August 2012. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Wylam with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish on 2 January 2099. Having 73 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Winter we were approach by Mr I Morgan , who was assigned a lease of a newly refurbished flat in Wylam in July 1998. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative flats in Wylam with an extended lease were valued around £240,600. The mid-range ground rent payable was £65 billed monthly. The lease expiry date was on 24 February 2088. Having 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.