Wisbech leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Wisbech will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Engaging our service will provide you increased control over the value of your Wisbech leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her studio apartment in Wisbech, Rhiannon initiated the lease extension process as the eighty year threshold was quickly nearing. The lease extension was finalised in July 2007. The landlord’s charges were restricted to a tad over 700 pounds.
Last Spring we were contacted by Mrs A Patel , who bought a ground floor apartment in Wisbech in February 1997. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable properties in Wisbech with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended in 2094. Having 69 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2013 we were called by Mr and Mrs. L Young who, having took over the lease of a one bedroom flat in Wisbech in February 1998. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable properties in Wisbech with an extended lease were valued around £290,000. The average amount of ground rent was £60 collected quarterly. The lease expiry date was on 7 June 2105. Having 80 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.