The market value of a leasehold property in Wickford is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation enables Wickford qualifying lessees to an additional term of ninety years in addition to the existing term, at a notional rent (no ground rent). The intention of the valuation is to arrive at an opinion of 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 left on the lease are often regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| Virgin |
Lease extensions in Wickford can be a difficult process. We recommend you procure 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 a wealth of experience dealing with Wickford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael owned a studio flat in Wickford on the market with a lease of a few days over 59 years remaining. Michael informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. V Clarke purchased a garden flat in Wickford in April 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Wickford with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed yearly. The lease end date was in 2096. Having 70 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Last year we were contacted by Dr A Roberts , who moved into a garden apartment in Wickford in August 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative flats in Wickford with an extended lease were worth £223,400. The average amount of ground rent was £60 collected monthly. The lease came to a finish on 22 November 2085. Taking into account 59 years remaining we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus expenses.