Unfortunately that a Wadebridge residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wadebridge property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Wadebridge will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Wadebridge can be a difficult process. We recommend you procure 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 in-depth market knowledge procuring Wadebridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan was the the leasehold proprietor of a 2 bedroom flat in Wadebridge being marketed with a lease of just over sixty years outstanding. Dylan on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder 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 Dylan to invoke his statutory right. Dylan obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. U Davies completed a garden apartment in Wadebridge in October 1996. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Wadebridge with a long lease were worth £183,600. The mid-range ground rent payable was £65 collected per annum. The lease termination date was on 11 April 2083. Considering the 57 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
Mrs V Campbell purchased a one bedroom flat in Wadebridge in October 1997. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative flats in Wadebridge with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 23 October 2094. Considering the 68 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.