There is no doubt about it a leasehold flat or house in Wisbech is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Wisbech will qualify for this right; that being said a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Wisbech with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
The conveyancing solicitors that we work with handle Wisbech lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her first floor flat in Wisbech, Mollie started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work completed in April 2008. The freeholder’s costs were negotiated to less than 650 pounds.
Last Summer we were contacted by Dr T González , who took over the lease of a recently refurbished flat in Wisbech in April 2012. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable homes in Wisbech with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out on 22 June 2080. Given that there were 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus fees.
Last year we were e-mailed by Mr and Mrs. F González , who was assigned a lease of a newly refurbished flat in Wisbech in November 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Wisbech with a long lease were worth £227,800. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2091. Given that there were 65 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.