Virginia Water leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Virginia Water residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Virginia Water you must see if your lease has between 70 and 90 years left. There are good reasons why a Virginia Water flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Virginia Water with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased 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 wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her studio flat in Virginia Water, Eleanor started the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension completed in March 2007. The freeholder’s fees were kept to an absolute minimum.
Dr L Thompson acquired a first floor apartment in Virginia Water in August 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Virginia Water with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 collected annually. The lease lapsed in 2099. Considering the 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last Christmas we were e-mailed by Dr Lewis Nguyen , who bought a one bedroom apartment in Virginia Water in January 2012. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Identical premises in Virginia Water with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 collected every twelve months. The lease elapsed in 2079. Having 53 years left we estimated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 plus legals.