It’s an underpublicised certainty that a Wadebridge residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Wadebridge property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to 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 leasehold owners in Wadebridge will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Wadebridge leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan owned a studio apartment in Wadebridge being marketed with a lease of a little over 72 years remaining. Evan on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Mrs Jodie Girard was assigned a lease of a one bedroom apartment in Wadebridge in May 2004. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable homes in Wadebridge with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish in 2091. Taking into account 65 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
In 2012 we were phoned by Mrs F Hernández who, having moved into a newly refurbished apartment in Wadebridge in January 2008. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable premises in Wadebridge with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease finished in 2102. Having 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.