The re-sale value of a leasehold property in Wickford is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised prior to the eighty year threshold. Leasehold Reform legislation enables Wickford qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Wickford with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Wickford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy negotiations with the landlord of her purpose-built apartment in Wickford, Kayleigh commenced the lease extension process as the eighty year threshold was fast coming. The transaction was concluded in June 2014. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were called by Mr Connor Brown who, having took over the lease of a purpose-built flat in Wickford in October 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Wickford with an extended lease were valued around £275,000. The average amount of ground rent was £65 collected monthly. The lease ended on 4 January 2093. Taking into account 68 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last Christmas we were called by Dr Jacob Reed , who owned a one bedroom flat in Wickford in January 2006. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Wickford with a long lease were worth £208,600. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 8 October 2082. Considering the 57 years remaining we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.