With a residential leasehold premises in Wisbech, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Anyone in Wisbech with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the relevant legislation the landlord can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Wisbech with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Wisbech leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Aiden, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Wisbech. Having bought his property twenty years ago, the length of the lease was of minimal significance. Thankfully, he recognised he needed to take action soon on Extending the lease. Aiden arranged for a lease extension just ahead of time last April. Aiden and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If the lease had slid to less than 80 years, the price would have escalated by a minimum £975.
In 2013 we were called by Dr G Clark who, having completed a newly refurbished flat in Wisbech in September 2009. We are asked if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in Wisbech with an extended lease were worth £235,200. The average ground rent payable was £45 collected monthly. The lease came to a finish in 2091. Given that there were 66 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2011 we were called by Dr Abigail Laurent who, having was assigned a lease of a purpose-built flat in Wisbech in August 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Wisbech with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded on 2 October 2102. Taking into account 77 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.