When it comes to long leasehold property in Wylam, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Wylam with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Wylam lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Dylan was the the leasehold proprietor of a high value apartment in Wylam on the market with a lease of a little over 72 years outstanding. Dylan on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Mr and Mrs. N Leroy acquired a purpose-built apartment in Wylam in September 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Wylam with an extended lease were valued around £210,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out on 1 May 2105. Given that there were 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.
Mr and Mrs. K Parker purchased a basement flat in Wylam in May 2002. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Wylam with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed in 2094. Taking into account 69 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.