Wedmore leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Wedmore will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Wedmore,the lease extension experts that we work with will always be prepared 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.
Two years ago Thomas, started to get close to the eighty-year mark with the lease on his basement apartment in Wedmore. Having purchased his home two decades ago, the unexpired term was of no relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Thomas was able to extend his lease just under the wire last March. Thomas and the freeholder via the management company ultimately agreed on a premium of £5,500 . If the lease had slipped lower than eighty years, the figure would have become more exhorbitant by a minimum £1,025.
In 2014 we were contacted by Ms Emily Ramírez who, having acquired a garden flat in Wedmore in August 2004. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical residencies in Wedmore with a long lease were in the region of £206,200. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated on 11 May 2082. Given that there were 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including professional charges.
In 2014 we were contacted by Mr Jonathan Hall who, having acquired a one bedroom apartment in Wedmore in September 1998. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Wedmore with an extended lease were worth £200,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed in 2103. Given that there were 77 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.