West Wickham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in West Wickham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in West Wickham you would be well advised to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in West Wickham with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in West Wickham can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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 West Wickham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Eliot, came very near to the eighty-year threshold with the lease on his studio flat in West Wickham. Having purchased his property 18 years previously, the lease term was of no interest. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Eliot arranged for a lease extension just under the wire in July. Eliot and the freeholder ultimately settled on sum of £5,500 . If he not met the deadline, the sum would have increased by at least £1,075.
Mrs Mia Stewart moved into a one bedroom flat in West Wickham in June 1998. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in West Wickham with 100 year plus lease were valued about £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease expired on 21 October 2092. Having 66 years unexpired we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of costs.
An example of a Freehold Enfranchisement case for a West Wickham premises is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case affected 2 flats. The unexpired term was 76.75 and 88.83.