It’s an underpublicised certainty that a West Wickham 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 first few years due to the deflation being disguised by increases in the West Wickham property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in West Wickham will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in West Wickham with over 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Skipton Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in West Wickham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Wickham valuers.
Logan was the the leasehold owner of a 2 bedroom apartment in West Wickham on the market with a lease of a little over 59 years outstanding. Logan on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr Eli Brown acquired a basement flat in West Wickham in October 2007. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in West Wickham with 100 year plus lease were valued around £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expiry date was on 15 October 2102. Taking into account 76 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a West Wickham residence is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case related to 2 flats. The remaining number of years on the lease was 76.75 and 88.83.