As the length of the unexpired term of a Wickford residential lease decreases so does its value and therefore the value of your property. Where the lease has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Wickford will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Wickford with over 100 years unexpired on the lease are often regarded as a ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wickford can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Wickford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her studio flat in Wickford, Aimee initiated the lease extension process as the 80 year deadline was quickly coming. The transaction completed in August 2006. The landlord’s fees were kept to an absolute minimum.
Mr A Kelly acquired a one bedroom flat in Wickford in August 1995. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative properties in Wickford with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £45 billed per annum. The lease concluded in 2100. Considering the 75 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Mrs Y André completed a purpose-built flat in Wickford in April 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Wickford with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 collected quarterly. The lease ended in 2089. Considering the 64 years left we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.