Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wickford. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Wickford have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give due consideration before delaying your Wickford lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using 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 wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Harry, came critically close to the eighty-year threshold with the lease on his basement apartment in Wickford. Having purchased his property 18 years previously, the lease term was of no relevance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Harry arranged for a lease extension just under the wire in January. Harry and the landlord subsequently settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the price would have gone up by a minimum £1,125.
Dr Nicole White completed a studio apartment in Wickford in May 2011. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar homes in Wickford with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease finished in 2080. Having 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including professional charges.
In 2011 we were approached by Dr Phoebe Bertrand who, having was assigned a lease of a one bedroom flat in Wickford in May 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable residencies in Wickford with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced annually. The lease lapsed in 2100. Considering the 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.