There is no doubt about it a leasehold flat or house in Wadhurst is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Wadhurst will meet the qualifying criteria; however a lawyer should be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Wadhurst with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Wadhurst leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Nathaniel, started to get near to the 80-year threshold with the lease on his first floor apartment in Wadhurst. Having bought his home two decades ago, the lease term was of no importance. As luck would have it, he realised he needed to take action soon on a lease extension. Nathaniel arranged for a lease extension at the eleventh hour last August. Nathaniel and the freeholder subsequently agreed on sum of £5,000 . If the lease had dropped below eighty years, the premium would have escalated by at least £1,050.
In 2011 we were phoned by Mr Tommy Brooks who, having acquired a garden flat in Wadhurst in April 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Wadhurst with an extended lease were in the region of £275,000. The average ground rent payable was £45 billed annually. The lease expired on 6 September 2094. Considering the 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
In 2013 we were approached by Mr and Mrs. C Ali who, having owned a purpose-built apartment in Wadhurst in April 1995. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative premises in Wadhurst with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 collected monthly. The lease ran out in 2083. Having 58 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.