The re-sale value of a leasehold property in Wick depends on how many years the lease has left to run. If it is close 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 before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised well before the eighty year threshold. Leasehold Reform legislation entitles Wick qualifying lessees to an additional term of 90 years on top of the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Wick with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wick can be a difficult process. We recommend you secure professional help from a lawyer and valuer 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 Wick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Riley, started to get near to the 80-year threshold with the lease on his one bedroom flat in Wick. In buying his property two decades ago, the unexpired term was of little importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Riley was able to extend his lease just in the nick of time in January. Riley and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he not met the deadline, the price would have gone up by at least £875.
In 2012 we were phoned by Ms Daisy Adams who, having bought a recently refurbished apartment in Wick in September 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative premises in Wick with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished in 2099. Considering the 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Christmas we were e-mailed by Mr and Mrs. A Thompson , who bought a newly refurbished flat in Wick in November 2002. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Wick with a long lease were worth £240,600. The average ground rent payable was £60 invoiced annually. The lease end date was in 2088. Taking into account 62 years unexpired we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.