It’s a harsh certainty that a Wickford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wickford property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Wickford will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Wickford with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Wickford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Daniel, started to get close to the eighty-year mark with the lease on his leasehold apartment in Wickford. In buying his flat twenty years ago, the lease term was of minimal importance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Daniel arranged for a lease extension just in the nick of time last September. Daniel and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If the lease had fallen to less than eighty years, the figure would have increased by a minimum £900.
In 2009 we were phoned by Mr and Mrs. J Leroy who, having owned a one bedroom flat in Wickford in May 2004. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative homes in Wickford with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 invoiced quarterly. The lease concluded on 22 January 2085. Having 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus fees.
Mr Rory Young owned a garden apartment in Wickford in November 2010. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Wickford with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 collected annually. The lease lapsed in 2105. Considering the 79 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.