The value of Virginia Water leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is below than eighty years
Leasehold properties in Virginia Water with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you better control over the value of your Virginia Water leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold owner of a high value flat in Virginia Water being sold with a lease of a little over 61 years unexpired. Michael on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Dr S Lefèvre was assigned a lease of a one bedroom apartment in Virginia Water in May 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Virginia Water with an extended lease were in the region of £208,200. The average ground rent payable was £65 invoiced per annum. The lease elapsed on 6 January 2086. Considering the 61 years unexpired we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.
In 2009 we were e-mailed by Ms Ellen Pérez who, having was assigned a lease of a one bedroom apartment in Virginia Water in July 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative premises in Virginia Water with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish in 2097. Taking into account 72 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.