With a long leasehold premises in West Wickham, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in West Wickham with a lease drawing near to 81 years left should seriously consider extending it sooner than later. When the lease term has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in West Wickham with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in West Wickham can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring West Wickham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Toby, started to get near to the 80-year mark with the lease on his basement flat in West Wickham. In buying his home twenty years ago, the lease term was of no importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Toby arranged for a lease extension just under the wire last January. Toby and the freeholder ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by at least £975.
Last Autumn we were approach by Mr and Mrs. F Bernard , who was assigned a lease of a garden flat in West Wickham in November 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable homes in West Wickham with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected every twelve months. The lease end date was in 2101. Having 75 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a West Wickham residence is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case related to 2 flats. The number of years remaining on the existing lease(s) was 76.75 and 88.83.