Wigton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Wigton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wigton you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Wigton 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.
Twenty four months ago Austin, started to get near to the 80-year threshold with the lease on his studio apartment in Wigton. In buying his property two decades ago, the length of the lease was of little interest. by good luck, he became aware that he would soon be paying way over the odds for a lease extension. Austin arranged for a lease extension at the eleventh hour last September. Austin and the landlord subsequently settled on an amount of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,125.
In 2014 we were called by Mr Liam Lambert who, having moved into a purpose-built apartment in Wigton in May 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative premises in Wigton with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2094. Considering the 69 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Last Summer we were contacted by Ms M Alexander , who was assigned a lease of a studio apartment in Wigton in October 2002. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Wigton with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease came to a finish in 2083. Given that there were 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.