The re-sale value of a leasehold property in West Wickham is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised well before the eighty year threshold. Statute enables West Wickham qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 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 |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Lease extensions in West Wickham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with 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.
Oscar owned a conversion flat in West Wickham on the market with a lease of fraction over 61 years left. Oscar informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2013 we were contacted by Dr C Petit who, having owned a newly refurbished flat in West Wickham in August 1996. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical properties in West Wickham with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated in 2093. Taking into account 67 years unexpired we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus costs.
An example of a Freehold Enfranchisement case for a West Wickham flat is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case was in relation to 2 flats. The unexpired term was 76.75 and 88.83.