There is no doubt about it a leasehold flat or house in Wickford is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Wickford will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Wickford with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Coventry Building Society | 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. |
| 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. |
| Yorkshire 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. |
Using 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 decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Charlie, came perilously close to the 80-year mark with the lease on his garden flat in Wickford. In buying his flat two decades ago, the length of the lease was of little relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Charlie extended the lease just ahead of time last June. Charlie and the freeholder ultimately agreed on an amount of £6,000 . If he had missed the deadline, the amount would have increased by at least £1,000.
In 2011 we were called by Mr and Mrs. H Rose who, having acquired a ground floor flat in Wickford in September 2012. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Wickford with 100 year plus lease were worth £285,000. The average ground rent payable was £45 collected every twelve months. The lease finished in 2096. Given that there were 71 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Last Winter we were e-mailed by Mr and Mrs. U Evans , who owned a garden flat in Wickford in November 2005. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Wickford with an extended lease were valued about £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease finished on 27 March 2085. Given that there were 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £25,700 and £29,600 exclusive of fees.