It’s a harsh truth that a Wickford residential lease is a deteriorating asset. As the lease term diminishes 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 prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls 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. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Wickford will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Wickford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wickford valuers.
Off the back of lengthy correspondence with the landlord of her studio flat in Wickford, Laura initiated the lease extension process as the eighty year mark was rapidly nearing. The transaction was concluded in July 2011. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were contacted by Mrs F Evans , who acquired a newly refurbished apartment in Wickford in March 1999. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Wickford with a long lease were in the region of £290,000. The average ground rent payable was £45 collected every twelve months. The lease ran out in 2098. Taking into account 73 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Winter we were e-mailed by Ms Holly Nguyen , who purchased a studio apartment in Wickford in May 1997. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar premises in Wickford with 100 year plus lease were in the region of £235,600. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 9 October 2087. Given that there were 62 years unexpired we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus professional charges.