It’s an underpublicised certainty that a Wadebridge residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Wadebridge property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Wadebridge will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations 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 conveyancer for the duration of the formalities.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 lawyer we work with provide it.
After lengthy negotiations with the landlord of her studio flat in Wadebridge, Ellen started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work completed in October 2009. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. G Davis who, having took over the lease of a purpose-built flat in Wadebridge in June 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Wadebridge with a long lease were worth £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed on 6 February 2091. Given that there were 66 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Christmas we were called by Ms T François , who purchased a one bedroom apartment in Wadebridge in October 1996. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical properties in Wadebridge with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2102. Considering the 77 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.