Wisbech leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wisbech residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wisbech you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Wisbech leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Wisbech leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Jasper, started to get close to the 80-year threshold with the lease on his ground floor flat in Wisbech. In buying his property 18 years previously, the unexpired term was of little significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Jasper arranged for a lease extension at the eleventh hour last January. Jasper and the freeholder eventually agreed on sum of £5,500 . If the lease had slipped lower than eighty years, the amount would have escalated by at least £1,100.
Last November we were e-mailed by Mr and Mrs. A Brooks , who was assigned a lease of a first floor flat in Wisbech in January 2010. The question was if we could estimate the premium would be to prolong the lease by 90 years. Similar homes in Wisbech with an extended lease were valued about £242,600. The average ground rent payable was £45 invoiced per annum. The lease ran out on 27 August 2093. Given that there were 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.
In 2012 we were e-mailed by Mr Liam Torres who, having completed a newly refurbished apartment in Wisbech in August 2003. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Wisbech with a long lease were in the region of £280,000. The average ground rent payable was £55 billed quarterly. The lease expired on 28 August 2104. Considering the 78 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.