The market value of Wickford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than eighty years
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| 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. |
Lease extensions in Wickford can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Wickford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar owned a studio flat in Wickford on the market with a lease of fraction over fifty eight years remaining. Omar informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Autumn we were called by Ms Anna Brown , who took over the lease of a purpose-built flat in Wickford in April 1999. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Wickford with 100 year plus lease were valued about £184,000. The average amount of ground rent was £55 collected per annum. The lease expired on 10 August 2079. Considering the 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
In 2013 we were approached by Mr Daniel Murphy who, having acquired a one bedroom flat in Wickford in January 2010. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar properties in Wickford with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 collected annually. The lease finished on 21 November 2099. Considering the 73 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.