Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Wickersley. Clearly, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Wickersley have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give due attention before delaying your Wickersley lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
Leasehold properties in Wickersley with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Wickersley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wickersley valuers.
In the wake of eight months of lengthy correspondence with the freeholder of her two bedroom apartment in Wickersley, Kate commenced the lease extension process as the eighty year mark was quickly advancing. The transaction completed in June 2011. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. G Cooper who, having moved into a studio flat in Wickersley in June 2004. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Wickersley with a long lease were valued around £210,600. The mid-range amount of ground rent was £45 billed yearly. The lease termination date was on 15 August 2087. Having 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
Dr Bethan Patel purchased a garden apartment in Wickersley in February 2010. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Wickersley with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated on 23 January 2098. Taking into account 73 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.