Wick residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Wick,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wick valuers.
Off the back of unsuccessful correspondence with the landlord of her basement apartment in Wick, Megan initiated the lease extension process as the 80 year deadline was fast coming. The legal work was finalised in January 2013. The freeholder’s charges were kept to an absolute minimum.
Dr U Collins completed a ground floor apartment in Wick in September 2005. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Wick with an extended lease were in the region of £260,200. The average amount of ground rent was £65 billed every twelve months. The lease expired on 26 March 2091. Considering the 66 years remaining we estimated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus costs.
Mr and Mrs. D Morris owned a studio flat in Wick in November 1995. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar premises in Wick with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish on 17 January 2080. Taking into account 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.