When it comes to domestic leasehold property in Wadebridge, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years left. Leasehold owners in Wadebridge with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Wadebridge with more than one hundred years left 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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
The lawyers that we work with handle 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.
Logan was the the leasehold proprietor of a conversion flat in Wadebridge on the market with a lease of fraction over 59 years outstanding. Logan on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Mr and Mrs. E Reed took over the lease of a basement apartment in Wadebridge in May 2012. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Identical homes in Wadebridge with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 invoiced annually. The lease ended on 11 June 2101. Given that there were 75 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
In 2010 we were phoned by Mr W Rivera who, having acquired a studio apartment in Wadebridge in September 2011. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative residencies in Wadebridge with 100 year plus lease were valued about £168,800. The mid-range ground rent payable was £60 billed per annum. The lease ended on 8 March 2081. Considering the 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.