Unfortunately that a Wadebridge residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Wadebridge property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Wadebridge will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Wadebridge with over one hundred 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake Wadebridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her basement apartment in Wadebridge, Ashleigh commenced the lease extension process as the eighty year mark was swiftly nearing. The lease extension completed in July 2013. The freeholder’s charges were kept to an absolute minimum.
Last April we were contacted by Mr and Mrs. A Bailey , who was assigned a lease of a one bedroom flat in Wadebridge in June 1995. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable homes in Wadebridge with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 collected annually. The lease finished in 2102. Considering the 77 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
In 2009 we were contacted by Mr and Mrs. D Fournier who, having acquired a basement flat in Wadebridge in September 2006. We are asked if we could approximate the price would be for a ninety year lease extension. Identical properties in Wadebridge with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed in 2082. Given that there were 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.