When it comes to long leasehold premises in Wickford, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Wickford with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the relevant Act the landlord can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Wickford with over one hundred years remaining 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Wickford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Callum, came dangerously near to the eighty-year threshold with the lease on his two bedroom apartment in Wickford. In buying his flat 19 years previously, the unexpired term was of no concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Callum arranged for a lease extension just under the wire in August. Callum and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had slipped lower than 80 years, the sum would have gone up by a minimum £900.
Last Christmas we were approach by Mrs Paige Cook , who bought a first floor flat in Wickford in May 1998. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative flats in Wickford with 100 year plus lease were in the region of £260,200. The average amount of ground rent was £65 billed annually. The lease elapsed on 6 September 2091. Taking into account 66 years as a residual term we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus professional charges.
In 2014 we were phoned by Mr O Leroy who, having purchased a ground floor flat in Wickford in July 2011. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparable residencies in Wickford with a long lease were in the region of £198,800. The average ground rent payable was £55 billed quarterly. The lease finished in 2080. Considering the 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus costs.