There is no doubt about it a leasehold flat or house in West Wickham is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in West Wickham will meet the qualifying criteria; however a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you enhanced control over the value of your West Wickham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jude, came very near to the 80-year mark with the lease on his two bedroom apartment in West Wickham. Having bought his property two decades ago, the length of the lease was of minimal relevance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Jude extended the lease just ahead of time in March. Jude and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the figure would have escalated by at least £1,100.
Last Spring we were approach by Dr U Martínez , who took over the lease of a garden flat in West Wickham in April 1998. The question was if we could approximate the price could be to extend the lease by an additional years. Similar flats in West Wickham with a long lease were valued around £240,600. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 24 August 2087. Taking into account 62 years left we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 unexpired residue of the current lease was 76.75 and 88.83.