With a domestic leasehold premises in Wymondham, you effectively rent it for a certain amount of time. Modern flat leases are usually granted 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. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Wymondham with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Wymondham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Wymondham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wymondham valuers.
Jacob was the the leasehold owner of a conversion apartment in Wymondham being sold with a lease of a little over 59 years remaining. Jacob informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
In 2011 we were phoned by Mr Samuel White who, having bought a one bedroom flat in Wymondham in November 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar residencies in Wymondham with an extended lease were valued around £243,000. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2089. Given that there were 63 years left we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.
Ms W Brooks completed a newly refurbished flat in Wymondham in September 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar homes in Wymondham with 100 year plus lease were valued about £181,600. The mid-range ground rent payable was £55 billed yearly. The lease end date was in 2078. Having 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including professional charges.