The re-sale value of a leasehold property in Waddington is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed well before the 80 year mark. Current legislation enables Waddington qualifying lessees to an additional term of ninety years in addition to the existing term, at a nominal rent (no ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Waddington with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Waddington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Waddington valuers.
During the course of the last few months Felix, came perilously near to the eighty-year threshold with the lease on his purpose- built flat in Waddington. In buying his flat two decades ago, the length of the lease was of no importance. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Felix was able to extend his lease just ahead of time in April. Felix and the landlord ultimately settled on sum of £5,000 . If he failed to meet the deadline, the amount would have increased by at least £975.
Ms U Reed bought a one bedroom flat in Waddington in June 1998. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative premises in Waddington with an extended lease were valued around £200,000. The average ground rent payable was £50 collected yearly. The lease finished on 24 July 2104. Having 78 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. R Roberts took over the lease of a one bedroom flat in Waddington in February 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Waddington with a long lease were worth £267,600. The average ground rent payable was £65 invoiced per annum. The lease expired in 2093. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.