Why you should start your Wadebridge lease extension

Main reasons to commence your Wadebridge lease extension today:

A Wadebridge lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Wadebridge depends on how long the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised well before the eighty year cut off point. Current legislation enables Wadebridge qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Wadebridge property with a lease extension is almost the same value as a freehold

Leasehold properties in Wadebridge with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Wadebridge?

The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.

Wadebridge Lease Extension Case Summaries:

Rebecca, Wadebridge, Cornwall,

In the wake of 6 months of lengthy negotiations with the freeholder of her leasehold flat in Wadebridge, Rebecca commenced the lease extension process as the 80 year deadline was swiftly advancing. The transaction was concluded in May 2008. The freeholder’s charges were negotiated to approximately 700 GBP.

Wadebridge case:

Last Spring we were approach by Dr Natasha Cooper , who took over the lease of a one bedroom flat in Wadebridge in August 2003. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar properties in Wadebridge with a long lease were valued around £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease end date was in 2105. Considering the 79 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.

Wadebridge case:

In 2009 we were contacted by Mr Sebastian Martinez who, having owned a one bedroom flat in Wadebridge in April 1998. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in Wadebridge with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out on 8 January 2085. Having 59 years unexpired we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.