As the length of the unexpired term of a Virginia Water domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Virginia Water will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Retaining our service gives you enhanced 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a conversion apartment in Virginia Water on the market with a lease of fraction over 59 years outstanding. Noah informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. A Ricardo who, having purchased a garden flat in Virginia Water in July 2012. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Similar residencies in Virginia Water with a long lease were in the region of £193,400. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2085. Considering the 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of costs.
Last Autumn we were called by Dr Y Davies , who bought a garden apartment in Virginia Water in October 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Virginia Water with a long lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease ended on 19 February 2096. Having 70 years unexpired we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including fees.