Wirksworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Wirksworth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Wirksworth you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| TSB | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Engaging our service will provide you better control over the value of your Wirksworth leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dylan, started to get near to the eighty-year mark with the lease on his studio flat in Wirksworth. Having purchased his property two decades ago, the lease term was of no concern. Luckily, he realised he would imminently be paying an inflated amount for a lease extension. Dylan extended the lease just ahead of time last June. Dylan and the freeholder subsequently settled on a premium of £5,500 . If the lease had descended below 80 years, the price would have increased by at least £1,100.
Mr Zachary Lambert moved into a first floor flat in Wirksworth in January 1997. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Wirksworth with a long lease were worth £275,000. The average ground rent payable was £55 billed yearly. The lease finished on 22 October 2102. Taking into account 76 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were contacted by Mr Evan Khan , who owned a one bedroom apartment in Wirksworth in August 1998. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar flats in Wirksworth with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 12 April 2082. Having 56 years outstanding we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.