Wadhurst residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Wadhurst with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Wadhurst,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wadhurst valuers.
Luke was the the leasehold owner of a conversion apartment in Wadhurst on the market with a lease of just over fifty eight years remaining. Luke informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last Summer we were contacted by Ms Katie Davies , who purchased a purpose-built flat in Wadhurst in September 1997. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Wadhurst with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed annually. The lease elapsed on 11 January 2089. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.
Last January we were called by Mr and Mrs. E Morgan , who was assigned a lease of a garden flat in Wadhurst in March 1998. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Wadhurst with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 billed yearly. The lease termination date was in 2078. Given that there were 52 years outstanding we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus professional charges.