The value of Wickford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than 80 years
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Wickford,the lease extension solicitors that we work with will always be happy 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.
Following lengthy negotiations with the freeholder of her one bedroom apartment in Wickford, Mollie commenced the lease extension process as the eighty year deadline was fast nearing. The transaction completed in October 2005. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were called by Dr Tyler Sánchez , who bought a one bedroom apartment in Wickford in October 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Wickford with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 billed annually. The lease expiry date was in 2102. Taking into account 76 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Mrs Alicia Thompson acquired a basement flat in Wickford in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Wickford with a long lease were in the region of £257,800. The average ground rent payable was £65 billed every twelve months. The lease ran out in 2091. Considering the 65 years unexpired we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.