The value of Wadhurst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wadhurst can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Wadhurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a conversion apartment in Wadhurst on the market with a lease of just over sixty years remaining. Stanley informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2014 we were contacted by Mr and Mrs. W Clark who, having moved into a studio apartment in Wadhurst in January 2006. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparative residencies in Wadhurst with an extended lease were worth £267,600. The average ground rent payable was £65 invoiced monthly. The lease ended on 20 March 2093. Considering the 67 years left we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including professional charges.
Dr U Sharif bought a one bedroom apartment in Wadhurst in May 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Wadhurst with 100 year plus lease were in the region of £206,200. The mid-range amount of ground rent was £60 billed yearly. The lease expiry date was in 2082. Given that there were 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.