Wickersley leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Wickersley will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Wickersley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Blake, came seriously close to the eighty-year threshold with the lease on his garden flat in Wickersley. Having bought his property two decades ago, the unexpired term was of little relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Blake extended the lease just ahead of time last June. Blake and the landlord eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £900.
In 2012 we were approached by Mr and Mrs. C Nelson who, having acquired a ground floor flat in Wickersley in January 2002. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Wickersley with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 billed annually. The lease expired on 25 April 2090. Considering the 64 years outstanding we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus costs.
In 2012 we were called by Dr Abbie Morgan who, having was assigned a lease of a first floor apartment in Wickersley in July 2002. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative residencies in Wickersley with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease end date was on 18 June 2101. Taking into account 75 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.