Waddon leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term is under eighty 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. Flat owners in Waddon will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Waddon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy correspondence with the freeholder of her one bedroom apartment in Waddon, Leah started the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was concluded in July 2009. The landlord’s costs were restricted to about 700 GBP.
Mr and Mrs. W Cook owned a one bedroom apartment in Waddon in August 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable flats in Waddon with 100 year plus lease were valued around £243,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished on 20 May 2088. Considering the 63 years remaining we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Waddon premises is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case affected 4 flats. The unexpired lease term was 98 years.