When it comes to residential leasehold property in Wisbech, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years left. Residents in Wisbech with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has less than 80 years outstanding, under the current statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Chelsea 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. |
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. |
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. |
Lease extensions in Wisbech can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Wisbech lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake owned a 2 bedroom apartment in Wisbech being marketed with a lease of fraction over 61 years remaining. Jake on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last year we were approach by Ms Phoebe Bailey , who acquired a ground floor apartment in Wisbech in September 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable properties in Wisbech with a long lease were worth £264,000. The mid-range ground rent payable was £60 billed annually. The lease lapsed on 15 May 2078. Having 53 years unexpired we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of fees.
Last Autumn we were phoned by Mr and Mrs. R Torres , who purchased a one bedroom flat in Wisbech in October 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar properties in Wisbech with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 billed yearly. The lease expired on 17 May 2089. Taking into account 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus legals.