It’s a harsh truth that a Wickford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Wickford property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Wickford will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a property with more than 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 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Engaging our service will provide you enhanced control over the value of your Wickford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold owner of a conversion apartment in Wickford being marketed with a lease of a few days over sixty years left. Ryan informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2011 we were e-mailed by Mrs V Jones who, having acquired a recently refurbished flat in Wickford in February 1997. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Wickford with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease ran out on 18 September 2100. Having 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2013 we were contacted by Dr D Bennett who, having completed a newly refurbished apartment in Wickford in March 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Wickford with an extended lease were valued around £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease concluded in 2089. Taking into account 63 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.