When it comes to residential leasehold property in Wigton, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Wigton with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the current statute the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Wigton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her leasehold apartment in Wigton, Kate started the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was concluded in February 2006. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. E Turner , who acquired a garden flat in Wigton in August 2003. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Wigton with 100 year plus lease were valued around £189,000. The average amount of ground rent was £55 invoiced quarterly. The lease concluded in 2079. Considering the 53 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Last year we were called by Mr and Mrs. L Watson , who owned a studio apartment in Wigton in April 2002. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar flats in Wigton with an extended lease were in the region of £290,000. The average amount of ground rent was £45 collected monthly. The lease terminated in 2099. Given that there were 73 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.