As the the remaining lease term of a Wadhurst residential lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Wadhurst will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Wadhurst with over 100 years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
Using our service will provide you better control over the value of your Wadhurst leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Finn, started to get close to the eighty-year mark with the lease on his two bedroom flat in Wadhurst. Having purchased his home twenty years ago, the unexpired term was of minimal significance. by good luck, he realised he needed to take steps soon on Extending the lease. Finn arranged for a lease extension just under the wire in May. Finn and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he had missed the deadline, the sum would have gone up by a minimum £975.
Ms Ashleigh King completed a purpose-built apartment in Wadhurst in May 1997. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Wadhurst with an extended lease were in the region of £285,000. The average ground rent payable was £45 invoiced annually. The lease ran out on 16 October 2096. Given that there were 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
In 2014 we were e-mailed by Dr Ali Bell who, having completed a ground floor flat in Wadhurst in June 2006. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar homes in Wadhurst with an extended lease were in the region of £225,800. The average amount of ground rent was £60 invoiced monthly. The lease ended in 2085. Given that there were 60 years outstanding we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus costs.