For those whose Wadhurst property is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Wadhurst 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 conveyancer we work with provide it.
Ben was the the leasehold proprietor of a studio apartment in Wadhurst on the market with a lease of a few days over 61 years outstanding. Ben informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were e-mailed by Dr M Young who, having completed a one bedroom flat in Wadhurst in October 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Wadhurst with a long lease were valued about £174,200. The average amount of ground rent was £55 collected annually. The lease finished in 2077. Taking into account 51 years remaining we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were e-mailed by Mr and Mrs. P Turner who, having purchased a purpose-built flat in Wadhurst in February 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable residencies in Wadhurst with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated on 11 June 2097. Taking into account 71 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.