When it comes to residential leasehold premises in Wymondham, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Leasehold owners in Wymondham with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has less than eighty years remaining, under the current statute the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Wymondham with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with undertake Wymondham 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.
Following lengthy negotiations with the landlord of her studio apartment in Wymondham, Amber started the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction completed in November 2010. The freeholder’s costs were negotiated to approximately 550 pounds.
Mr and Mrs. P Dupont bought a one bedroom apartment in Wymondham in June 1996. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Wymondham with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired in 2103. Considering the 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Mr and Mrs. Y Lefebvre purchased a one bedroom apartment in Wymondham in October 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Wymondham with a long lease were worth £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed on 6 May 2092. Given that there were 67 years unexpired we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.