It’s a harsh truth that a Wigton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wigton property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Wigton will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Wigton can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 dealing with Wigton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Jacob, came seriously close to the eighty-year mark with the lease on his ground floor apartment in Wigton. Having bought his flat two decades ago, the length of the lease was of little interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Jacob extended the lease at the eleventh hour in June. Jacob and the freeholder subsequently settled on the final figure of £5,500 . If the lease had descended below eighty years, the figure would have escalated by a minimum £900.
Ms Madeleine Hall was assigned a lease of a ground floor flat in Wigton in April 2006. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical homes in Wigton with an extended lease were worth £267,600. The average ground rent payable was £65 invoiced per annum. The lease finished in 2093. Considering the 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus expenses.
In 2010 we were approached by Dr Jason Thomas who, having owned a first floor flat in Wigton in October 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable homes in Wigton with a long lease were in the region of £206,200. The average ground rent payable was £60 invoiced yearly. The lease end date was on 22 July 2082. Having 56 years remaining we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.