Wadebridge leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Wadebridge will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Wadebridge leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her two bedroom apartment in Wadebridge, Lily started the lease extension process just as the lease was approaching the crucial 80-year deadline. The transaction completed in August 2009. The landlord’s fees were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. C Roberts who, having took over the lease of a one bedroom apartment in Wadebridge in February 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Wadebridge with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed every twelve months. The lease finished in 2098. Given that there were 73 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last Christmas we were approach by Mr Ethan Turner , who acquired a garden apartment in Wadebridge in May 2000. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Wadebridge with a long lease were worth £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out in 2078. Having 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.