The value of Wigston 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 escalate materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander |
The conveyancers that we work with handle Wigston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
James owned a conversion flat in Wigston on the market with a lease of a little over 61 years left. James informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were James to invoke his statutory right. James obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Winter we were called by Dr M Morel , who took over the lease of a one bedroom apartment in Wigston in September 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Wigston with a long lease were worth £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease termination date was on 28 October 2087. Taking into account 61 years left we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus expenses.
Last Christmas we were called by Dr Eliot Bailey , who purchased a ground floor flat in Wigston in June 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Wigston with an extended lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed on 22 August 2098. Considering the 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.