When it comes to long leasehold property in Wadebridge, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Wadebridge with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Wadebridge with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wadebridge can be a difficult process. We recommend you secure professional help 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 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.
Theo owned a conversion apartment in Wadebridge being marketed with a lease of just over sixty years unexpired. Theo on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last month we were e-mailed by Mr and Mrs. A Khan , who was assigned a lease of a basement flat in Wadebridge in May 1998. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Wadebridge with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed quarterly. The lease expired in 2080. Given that there were 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.
In 2013 we were approached by Mr M Sánchez who, having bought a garden flat in Wadebridge in January 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Wadebridge with an extended lease were valued about £235,200. The average ground rent payable was £45 billed every twelve months. The lease termination date was in 2091. Taking into account 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.