The re-sale value of a leasehold property in Wickford is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded well before the eighty year mark. Statute enables Wickford qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Wickford with over 100 years unexpired 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wickford can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 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.
Following protracted discussions with the freeholder of her two bedroom apartment in Wickford, Kayleigh commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was concluded in May 2011. The landlord’s costs were kept to an absolute minimum.
Last Summer we were called by Dr G Bell , who purchased a one bedroom flat in Wickford in April 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Wickford with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 2 April 2079. Considering the 54 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus fees.
Mrs Ellen Hill took over the lease of a ground floor flat in Wickford in August 1995. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Wickford with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 28 November 2099. Taking into account 74 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.