With a residential leasehold premises in West Wickham, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years left. Residents in West Wickham with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in West Wickham can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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.
Half a year ago Harry, started to get close to the eighty-year mark with the lease on his basement flat in West Wickham. Having purchased his property 19 years ago, the length of the lease was of minimal bearing. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Harry arranged for a lease extension at the eleventh hour in July. Harry and the landlord subsequently agreed on sum of £5,500 . If the lease had dipped below 80 years, the price would have become more costly by at least £1,025.
In 2009 we were called by Dr Kate Ricardo who, having completed a ground floor apartment in West Wickham in February 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in West Wickham with an extended lease were in the region of £300,000. The average amount of ground rent was £50 invoiced yearly. The lease ended on 12 June 2097. Given that there were 76 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
An example of a Freehold Enfranchisement decision for a West Wickham property 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 residue of the current lease was 76.75 and 88.83.