The nearer a domestic lease in Wickford gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Wickford will qualify for this right; however a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Wickford with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Royal Bank of Scotland | 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. |
Lease extensions in Wickford can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 a wealth of experience procuring Wickford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her two bedroom apartment in Wickford, Rachel commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in March 2014. The landlord’s fees were kept to an absolute minimum.
Mr B Phillips moved into a studio apartment in Wickford in November 2009. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Identical homes in Wickford with a long lease were in the region of £235,600. The average amount of ground rent was £60 invoiced monthly. The lease expired in 2087. Having 62 years as a residual term we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.
Mr and Mrs. L Cox acquired a newly refurbished flat in Wickford in May 2006. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable properties in Wickford with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 8 March 2076. Considering the 51 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.