The closer a residential lease in Wythall gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Wythall will qualify for this right; that being said a conveyancing solicitor should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 |
| 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. |
Lease extensions in Wythall can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 in-depth market knowledge procuring Wythall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a high value flat in Wythall being marketed with a lease of fraction over fifty eight years unexpired. John informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Ms O Johnson took over the lease of a garden apartment in Wythall in March 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Wythall with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed per annum. The lease came to a finish on 22 October 2075. Taking into account 50 years left we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of fees.
Last year we were approach by Dr Madeleine Green , who purchased a one bedroom flat in Wythall in August 2005. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable residencies in Wythall with a long lease were valued around £280,000. The average amount of ground rent was £45 billed per annum. The lease finished on 23 March 2095. Taking into account 70 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.