Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Wickford. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Wickford have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give due consideration before putting off your Wickford lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
Leasehold properties in Wickford with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Wickford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wickford valuers.
Trailing protracted discussions with the freeholder of her studio flat in Wickford, Lydia started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work was finalised in September 2007. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were called by Dr S Howard , who was assigned a lease of a first floor apartment in Wickford in June 2008. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical homes in Wickford with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed on 2 January 2089. Given that there were 64 years left we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.
Mr and Mrs. U Morgan moved into a recently refurbished flat in Wickford in June 2001. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Wickford with 100 year plus lease were worth £184,000. The average ground rent payable was £55 invoiced yearly. The lease terminated on 12 September 2078. Having 53 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.