For anyone whose Wadebridge property is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold properties in Wadebridge with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you increased control over the value of your Wadebridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold owner of a studio apartment in Wadebridge being marketed with a lease of a little over sixty years remaining. Ben on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr Eliot Leroy bought a garden apartment in Wadebridge in October 2004. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative premises in Wadebridge with a long lease were worth £245,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Dr H Morgan was assigned a lease of a purpose-built flat in Wadebridge in March 2007. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable residencies in Wadebridge with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 invoiced yearly. The lease lapsed in 2105. Given that there were 79 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.