Unfortunately that a Wisbech residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Wisbech property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips under eighty 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 additional value that a lease extension will add the property Most leasehold owners in Wisbech will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations 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 conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Wisbech,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wisbech valuers.
Following protracted discussions with the landlord of her ground floor flat in Wisbech, Leah commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction was concluded in July 2007. The landlord’s charges were kept to an absolute minimum.
Dr Nathaniel Lefebvre took over the lease of a ground floor flat in Wisbech in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Wisbech with an extended lease were worth £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease ended on 27 July 2082. Taking into account 56 years remaining we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of expenses.
Last Christmas we were phoned by Mr and Mrs. N Watson , who bought a studio apartment in Wisbech in October 2011. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Wisbech with a long lease were valued about £242,600. The mid-range amount of ground rent was £45 collected annually. The lease finished on 28 February 2093. Taking into account 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.