When it comes to residential leasehold premises in Wickford, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Wickford with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
The lawyers that we work with handle Wickford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her one bedroom flat in Wickford, Natalie commenced the lease extension process as the 80 year mark was fast nearing. The transaction was finalised in November 2015. The freeholder’s fees were restricted to under 550 pounds.
Mrs Millie Jones took over the lease of a ground floor apartment in Wickford in January 2007. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative flats in Wickford with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 collected quarterly. The lease terminated on 27 March 2088. Taking into account 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.
Last Autumn we were approach by Mr and Mrs. E James , who purchased a one bedroom apartment in Wickford in January 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Wickford with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 billed annually. The lease ended in 2077. Taking into account 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 exclusive of legals.