As the the remaining lease term of a Wedmore residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Wedmore will qualify for this right; nevertheless a lawyer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Wedmore with over one hundred years unexpired 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wedmore can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Wedmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago John, came very close to the 80-year mark with the lease on his first floor apartment in Wedmore. Having bought his home two decades ago, the unexpired term was of little bearing. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. John extended the lease just ahead of time in April. John and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he not met the deadline, the amount would have escalated by at least £1,025.
Last Summer we were called by Mrs R Gunderson , who was assigned a lease of a studio apartment in Wedmore in October 2001. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical homes in Wedmore with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 billed yearly. The lease elapsed on 7 April 2090. Considering the 65 years unexpired we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.
Last Autumn we were approach by Dr W Morel , who moved into a one bedroom apartment in Wedmore in January 2012. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Wedmore with a long lease were valued around £196,400. The mid-range amount of ground rent was £55 collected annually. The lease ended on 10 June 2079. Considering the 54 years left we calculated the premium to the landlord to extend the lease to be within £35,200 and £40,600 plus professional charges.