Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wickford. Inevitably, the period of lease left shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Wickford have the legal entitlement to extend the lease for an additional ninety years under legislation. You should give careful consideration before putting off your Wickford lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Wickford with over one hundred years outstanding on the lease are often 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 upside in buying the freehold unless savings on ground rent and estate charges merit 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 recent months Gabriel, came perilously near to the eighty-year mark with the lease on his first floor flat in Wickford. In buying his property 19 years previously, the unexpired term was of minimal relevance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Gabriel arranged for a lease extension just in the nick of time last June. Gabriel and the landlord subsequently settled on sum of £5,500 . If the lease had dipped below eighty years, the sum would have gone up by at least £975.
Mr and Mrs. I Reed bought a studio apartment in Wickford in January 1995. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative flats in Wickford with a long lease were valued about £205,000. The average amount of ground rent was £50 billed monthly. The lease concluded on 13 April 2104. Taking into account 79 years remaining we calculated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of expenses.
Last Winter we were phoned by Mr and Mrs. O Davies , who bought a garden apartment in Wickford in June 1998. The question was if we could estimate the price could be for a ninety year lease extension. Comparative properties in Wickford with an extended lease were worth £275,000. The average amount of ground rent was £65 billed per annum. The lease finished in 2093. Taking into account 68 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.