There is no doubt about it a leasehold property in Wickford is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Wickford will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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 are not acceptable. 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; |
| Chelsea 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. |
| 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. |
| 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. |
| 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 |
Engaging our service gives you enhanced control over the value of your Wickford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sam was the the leasehold proprietor of a 2 bedroom apartment in Wickford being sold with a lease of a few days over 72 years left. Sam on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured satisfactory resolution informally and sell the property.
Last Spring we were approach by Mrs Sian Torres , who purchased a basement flat in Wickford in February 2002. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical flats in Wickford with an extended lease were valued about £275,000. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish in 2095. Taking into account 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Last May we were e-mailed by Dr Elijah Miller , who bought a one bedroom apartment in Wickford in February 1995. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar premises in Wickford with a long lease were valued around £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 5 March 2084. Considering the 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.