The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wadhurst may extend the lease for an additional ninety years under legislation. Do give careful consideration before delaying your Wadhurst lease extension. Shelving the costs today simply escalates the amount you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 gives you enhanced control over the value of your Wadhurst leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Edward, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Wadhurst. In buying his property twenty years ago, the unexpired term was of no relevance. Luckily, he became aware that he would imminently be paying an escalated premium for Extending the lease. Edward was able to extend his lease at the eleventh hour last July. Edward and the freeholder eventually settled on sum of £6,000 . If the lease had dropped lower than 80 years, the amount would have gone up by at least £950.
Dr Y Davis moved into a first floor apartment in Wadhurst in October 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Wadhurst with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2089. Given that there were 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus fees.
Last Autumn we were e-mailed by Mrs J Nelson , who took over the lease of a garden apartment in Wadhurst in November 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Wadhurst with a long lease were in the region of £189,000. The average amount of ground rent was £55 invoiced monthly. The lease expiry date was on 8 June 2078. Given that there were 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.