The re-sale value of a leasehold property in Wadebridge depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation enables Wadebridge qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
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 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.
During the course of the last few months Hugo, started to get close to the 80-year mark with the lease on his garden flat in Wadebridge. In buying his home two decades ago, the unexpired term was of no interest. by good luck, it dawned on him that he needed to take action soon on a lease extension. Hugo arranged for a lease extension just under the wire last January. Hugo and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £1,050.
Last Autumn we were approach by Mr W Turner , who moved into a purpose-built apartment in Wadebridge in May 2011. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Wadebridge with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished in 2081. Considering the 55 years left we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.
In 2012 we were contacted by Dr F Mercier who, having purchased a first floor flat in Wadebridge in January 2002. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable residencies in Wadebridge with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 12 June 2092. Having 66 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.