It’s a harsh truth that a Wedmore residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Wedmore property market.Where your lease has approximately ninety years left, you need to start considering 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 below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Wedmore will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Wedmore,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wedmore valuers.
In the wake of 9 months of unsuccessful discussions with the freeholder of her purpose-built flat in Wedmore, Naomi commenced the lease extension process as the 80 year mark was rapidly approaching. The lease extension was finalised in November 2009. The landlord’s charges were restricted to approximately 600 GBP.
Last month we were contacted by Ms Nicole Johnson , who completed a one bedroom flat in Wedmore in November 2012. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative premises in Wedmore with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 billed monthly. The lease expired on 24 June 2078. Given that there were 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Last Autumn we were approach by Mr Matthew James , who owned a basement flat in Wedmore in November 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in Wedmore with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease lapsed in 2098. Taking into account 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.