The market value of Wadebridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than eighty years
Leasehold properties in Wadebridge with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wadebridge can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
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 Wadebridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua owned a high value apartment in Wadebridge on the market with a lease of a little over 72 years unexpired. Joshua on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. A Clarke purchased a one bedroom apartment in Wadebridge in July 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Wadebridge with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 collected per annum. The lease came to a finish in 2100. Considering the 76 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2013 we were contacted by Mr E Martin who, having moved into a ground floor apartment in Wadebridge in September 2002. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative homes in Wadebridge with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2080. Having 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of legals.