With a residential leasehold property in Wynyard, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy 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 increases markedly particularly once there are fewer than 80 years remaining. Residents in Wynyard with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once a lease has under eighty years remaining, under the relevant legislation the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Wynyard with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Wynyard,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wynyard valuers.
Following lengthy discussions with the landlord of her ground floor apartment in Wynyard, Katie started the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in April 2008. The landlord’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. G Ricardo , who took over the lease of a basement flat in Wynyard in March 2008. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar premises in Wynyard with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 6 January 2086. Taking into account 60 years outstanding we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of expenses.
In 2012 we were phoned by Dr G González who, having bought a basement apartment in Wynyard in October 2005. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Wynyard with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2106. Given that there were 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.