The nearer a domestic lease in Wynyard nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Wynyard will qualify for this right; that being said a conveyancer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Wynyard with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wynyard can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 dealing with Wynyard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley was the the leasehold proprietor of a 2 bedroom apartment in Wynyard being sold with a lease of fraction over fifty eight years remaining. Stanley on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. P Morel purchased a studio apartment in Wynyard in May 1998. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Wynyard with 100 year plus lease were worth £171,800. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2075. Given that there were 50 years unexpired we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.
Mrs Bethany Vincent moved into a one bedroom apartment in Wynyard in October 1999. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Wynyard with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 9 August 2095. Taking into account 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.