With a long leasehold property in Wickersley, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years remaining. Leasehold owners in Wickersley with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Wickersley with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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 |
| 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. |
The lawyers 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 conveyancing solicitor we work with provide it.
Sam was the the leasehold owner of a conversion apartment in Wickersley being sold with a lease of a little over 61 years remaining. Sam informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2010 we were approached by Mr Gabriel Thomas who, having was assigned a lease of a ground floor flat in Wickersley in May 1999. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Wickersley with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish on 18 May 2082. Having 57 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
Last Christmas we were approach by Mr and Mrs. B Watson , who purchased a garden flat in Wickersley in February 1998. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Wickersley with a long lease were worth £245,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expiry date was on 3 January 2093. Considering the 68 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.