Wylam leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Wylam will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Wylam with in excess of 100 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wylam can be a difficult process. We recommend you get guidance from a lawyer 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 procuring Wylam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Caleb, came precariously near to the eighty-year threshold with the lease on his purpose- built apartment in Wylam. In buying his flat twenty years ago, the length of the lease was of no bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Caleb was able to extend his lease at the eleventh hour last May. Caleb and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If he had missed the deadline, the figure would have escalated by at least £1,075.
In 2009 we were approached by Mr and Mrs. H Carter who, having purchased a newly refurbished apartment in Wylam in September 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical homes in Wylam with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 billed annually. The lease expired in 2087. Considering the 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 plus fees.
In 2010 we were e-mailed by Mr and Mrs. U Thomas who, having took over the lease of a ground floor apartment in Wylam in September 2000. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Wylam with an extended lease were worth £171,800. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 26 February 2076. Considering the 50 years unexpired we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including expenses.