Wadebridge residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 obtain guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Wadebridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a conversion flat in Wadebridge being sold with a lease of a little over 59 years left. John on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2009 we were approached by Mr and Mrs. H Jackson who, having completed a one bedroom apartment in Wadebridge in November 2007. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Wadebridge with an extended lease were worth £220,400. The average ground rent payable was £45 collected per annum. The lease concluded on 2 June 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including legals.
In 2012 we were called by Ms Madeleine Petit who, having completed a basement apartment in Wadebridge in July 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Wadebridge with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 collected per annum. The lease ended on 15 August 2101. Considering the 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.