There is no doubt about it a leasehold property in Wedmore is a wasting asset as a result of the shortening lease. If the residual term has, over 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Wedmore will meet the qualifying criteria; that being said a lawyer will be able to confirm if you are eligible 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.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Wedmore 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.
In recent months Archie, started to get close to the 80-year mark with the lease on his one bedroom flat in Wedmore. Having purchased his home two decades ago, the unexpired term was of minimal significance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Archie was able to extend his lease just under the wire in June. Archie and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he not met the deadline, the figure would have escalated by at least £850.
Last year we were called by Mrs Y Young , who moved into a studio apartment in Wedmore in October 1997. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar properties in Wedmore with a long lease were valued around £179,200. The average amount of ground rent was £55 collected every twelve months. The lease terminated in 2077. Having 51 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Mrs Lauren Scott took over the lease of a first floor flat in Wedmore in January 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Wedmore with an extended lease were worth £285,000. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2097. Considering the 71 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.