The market value of a leasehold property in Wisbech depends on how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded prior to the 80 year mark. Leasehold Reform legislation enables Wisbech qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Wisbech leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tyler was the the leasehold proprietor of a high value apartment in Wisbech on the market with a lease of fraction over 59 years unexpired. Tyler on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr N Hill bought a basement flat in Wisbech in January 2009. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative homes in Wisbech with a long lease were worth £275,000. The average ground rent payable was £55 billed per annum. The lease elapsed in 2101. Considering the 76 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2010 we were phoned by Mr S Wright who, having completed a one bedroom apartment in Wisbech in May 2002. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar residencies in Wisbech with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 collected monthly. The lease ran out in 2081. Given that there were 56 years left we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including professional charges.