Wadhurst leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Wadhurst will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you better control over the value of your Wadhurst leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her basement apartment in Wadhurst, Paige commenced the lease extension process as the eighty year threshold was quickly nearing. The transaction was concluded in January 2009. The landlord’s costs were negotiated to approximately 550 pounds.
Last month we were approach by Ms Megan Leroy , who moved into a studio flat in Wadhurst in April 1996. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Wadhurst with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 collected monthly. The lease elapsed on 20 January 2083. Having 58 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
In 2013 we were approached by Mr Stanley Rogers who, having bought a ground floor flat in Wadhurst in April 2004. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Wadhurst with a long lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease finished in 2103. Considering the 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.