It’s a harsh certainty that a Wickford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Wickford property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term falls below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Wickford will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Wickford with over one hundred years remaining 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Lloyds TSB 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 |
Retaining our service will provide you better control over the value of your Wickford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy discussions with the landlord of her purpose-built apartment in Wickford, Katie initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was concluded in August 2008. The landlord’s fees were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. D Clark , who purchased a recently refurbished flat in Wickford in April 2008. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable flats in Wickford with an extended lease were valued around £285,000. The average amount of ground rent was £45 billed per annum. The lease finished on 3 November 2097. Considering the 72 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2012 we were approached by Mr M James who, having was assigned a lease of a one bedroom flat in Wickford in July 2012. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar residencies in Wickford with a long lease were valued about £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 20 July 2086. Given that there were 61 years outstanding we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus professional charges.