It’s a harsh certainty that a Wynyard residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Wynyard property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Wynyard will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
Lease extensions in Wynyard can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Wynyard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago William, started to get close to the 80-year mark with the lease on his one bedroom apartment in Wynyard. Having bought his property 19 years previously, the lease term was of little concern. Thankfully, he realised he needed to take action soon on Extending the lease. William arranged for a lease extension just under the wire last June. William and the landlord eventually settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,050.
In 2014 we were approached by Mr and Mrs. T Davis who, having completed a garden apartment in Wynyard in January 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Wynyard with an extended lease were worth £171,800. The average amount of ground rent was £55 billed every twelve months. The lease lapsed on 20 September 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
In 2010 we were contacted by Mr and Mrs. A Pérez who, having took over the lease of a basement flat in Wynyard in August 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar premises in Wynyard with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 billed monthly. The lease end date was in 2096. Considering the 70 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.