West Wickham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in West Wickham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in West Wickham you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your West Wickham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy negotiations with the landlord of her leasehold apartment in West Wickham, Victoria started the lease extension process as the 80 year deadline was quickly coming. The transaction was finalised in August 2006. The landlord’s costs were negotiated to under 550 GBP.
Ms Morgan Carter acquired a newly refurbished apartment in West Wickham in May 2010. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical premises in West Wickham with an extended lease were in the region of £213,600. The mid-range ground rent payable was £60 billed annually. The lease came to a finish on 2 July 2082. Considering the 57 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.
An example of a Freehold Enfranchisement case for a West Wickham premises is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case affected 2 flats. The number of years remaining on the existing lease(s) was 76.75 and 88.83.