The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wickford may extend the lease for a further ninety years in accordance with legislation. Do think carefully before delaying your Wickford lease extension. Shelving the costs today simply increases the premium you will ultimately have to pay for a lease extension.
Leasehold premises in Wickford with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Wickford leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ali owned a conversion flat in Wickford on the market with a lease of fraction over 59 years unexpired. Ali informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2014 we were called by Dr Caleb Scott who, having took over the lease of a purpose-built apartment in Wickford in November 1998. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable properties in Wickford with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2099. Given that there were 73 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. Y Simon took over the lease of a purpose-built apartment in Wickford in February 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Wickford with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out on 7 August 2088. Given that there were 62 years outstanding we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.