Wickford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Wickford tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Wickford you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Wickford flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Wickford with over one hundred years unexpired 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Wickford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Joseph, started to get close to the 80-year mark with the lease on his garden apartment in Wickford. In buying his property two decades ago, the length of the lease was of little significance. by good luck, he became aware that he would soon be paying an escalated premium for Extending the lease. Joseph was able to extend his lease at the eleventh hour in March. Joseph and the freeholder subsequently settled on an amount of £6,000 . If the lease had slipped below 80 years, the amount would have escalated by at least £925.
In 2013 we were called by Mr Eli Turner who, having took over the lease of a recently refurbished apartment in Wickford in September 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical homes in Wickford with an extended lease were worth £243,000. The mid-range ground rent payable was £65 billed monthly. The lease concluded in 2089. Having 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of legals.
Mr and Mrs. K Ward purchased a recently refurbished apartment in Wickford in July 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Wickford with an extended lease were valued around £181,600. The average ground rent payable was £55 billed monthly. The lease lapsed in 2078. Having 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.