There is no doubt about it a leasehold property in Wadebridge is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Wadebridge will meet the qualifying criteria; however a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Wadebridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide 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 Toby, started to get near to the eighty-year mark with the lease on his studio flat in Wadebridge. Having bought his flat two decades ago, the lease term was of minimal bearing. Luckily, he recognised he needed to take action soon on Extending the lease. Toby arranged for a lease extension just in the nick of time last June. Toby and the landlord subsequently agreed on the final figure of £5,500 . If the lease had descended to less than eighty years, the amount would have increased by a minimum £1,075.
Last Autumn we were approach by Dr J Carter , who took over the lease of a studio apartment in Wadebridge in June 2002. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparable residencies in Wadebridge with an extended lease were valued about £270,000. The average ground rent payable was £55 billed yearly. The lease termination date was in 2100. Taking into account 75 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Mr Stanley Lee took over the lease of a studio flat in Wadebridge in February 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative flats in Wadebridge with a long lease were in the region of £168,800. The average amount of ground rent was £60 billed annually. The lease concluded in 2080. Considering the 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.