It’s a harsh truth that a Wisbech residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wisbech property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Wisbech will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| The Mortgage Works |
The conveyancers that we work with undertake 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.
Following unsuccessful correspondence with the freeholder of her one bedroom apartment in Wisbech, Sian commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension was finalised in July 2007. The landlord’s costs were negotiated to about 650 GBP.
Last Christmas we were phoned by Mr and Mrs. L Clarke , who was assigned a lease of a studio flat in Wisbech in July 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Wisbech with a long lease were worth £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2104. Considering the 78 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
Last Winter we were called by Mr and Mrs. N Nelson , who bought a first floor flat in Wisbech in March 2012. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Comparable homes in Wisbech with a long lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease expired on 24 March 2084. Given that there were 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including professional charges.