With a residential leasehold property in Virginia Water, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Virginia Water with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Virginia Water leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Adam was the the leasehold proprietor of a studio flat in Virginia Water being sold with a lease of fraction over fifty eight years remaining. Adam on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last year we were contacted by Dr Max Alexander , who bought a ground floor apartment in Virginia Water in October 2001. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Virginia Water with a long lease were valued around £265,000. The average ground rent payable was £50 invoiced annually. The lease expired on 5 January 2098. Considering the 73 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Mr T Evans moved into a purpose-built flat in Virginia Water in April 1997. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar flats in Virginia Water with an extended lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2078. Considering the 53 years left we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.