With a long leasehold premises in Wickford, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be 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. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Wickford with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under eighty years left, under the current statute the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Wickford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wickford valuers.
Alex was the the leasehold owner of a conversion apartment in Wickford being sold with a lease of just over 61 years outstanding. Alex informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were approach by Ms S Wood , who acquired a one bedroom flat in Wickford in May 2008. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar homes in Wickford with a long lease were valued about £233,200. The average ground rent payable was £60 collected per annum. The lease end date was on 28 January 2087. Given that there were 61 years remaining we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus fees.
Mrs Amelia Bertrand bought a one bedroom flat in Wickford in January 2002. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Wickford with a long lease were valued around £166,800. The average ground rent payable was £50 billed quarterly. The lease finished in 2076. Given that there were 50 years outstanding we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.