Wickersley leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Leasehold owners in Wickersley will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Wickersley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ben owned a studio apartment in Wickersley being sold with a lease of a few days over sixty years outstanding. Ben informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2011 we were contacted by Mr L Evans who, having moved into a purpose-built apartment in Wickersley in August 2009. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative properties in Wickersley with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease came to a finish in 2102. Taking into account 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2013 we were e-mailed by Mr and Mrs. I Martinez who, having acquired a basement apartment in Wickersley in January 2000. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Wickersley with a long lease were valued about £176,200. The mid-range ground rent payable was £65 billed monthly. The lease concluded in 2082. Given that there were 56 years outstanding we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including expenses.