There is no doubt about it a leasehold property in Wisbech is a wasting asset as a result of the diminishing lease term. Where the lease has, over one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Wisbech will meet the qualifying criteria; however a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
Using our service gives you enhanced 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 decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Ali, came very near to the 80-year mark with the lease on his two bedroom flat in Wisbech. In buying his home two decades ago, the length of the lease was of little interest. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Ali was able to extend his lease just ahead of time last May. Ali and the freeholder via the managing agents eventually settled on sum of £6,000 . If the lease had dipped to less than 80 years, the sum would have become more exhorbitant by a minimum £1,025.
Mrs D Clark took over the lease of a basement apartment in Wisbech in February 2004. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative premises in Wisbech with an extended lease were valued about £280,000. The average ground rent payable was £55 collected every twelve months. The lease ran out in 2103. Taking into account 77 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
Last year we were approach by Mr and Mrs. W Miller , who moved into a purpose-built flat in Wisbech in January 2005. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Wisbech with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease expired in 2083. Having 57 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.