Wadebridge leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Wadebridge enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wadebridge you should see if your lease has between 70 and 90 years remaining. There are good reasons why a Wadebridge leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Wadebridge with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancers that we work with undertake 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.
John was the the leasehold owner of a high value flat in Wadebridge on the market with a lease of a few days over 61 years outstanding. John informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. F Murphy acquired a one bedroom apartment in Wadebridge in March 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Wadebridge with a long lease were valued about £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2077. Taking into account 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
In 2012 we were phoned by Mr and Mrs. W Girard who, having moved into a newly refurbished apartment in Wadebridge in March 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative flats in Wadebridge with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease elapsed on 26 January 2088. Given that there were 62 years outstanding we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.