It’s a harsh certainty that a Waddington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Waddington property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying 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 the property The majority of flat owners in Waddington will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Waddington with over one hundred years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Waddington,the lease extension lawyers that we work with will always be willing 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.
Two years ago Arthur, came dangerously close to the eighty-year mark with the lease on his two bedroom apartment in Waddington. In buying his home two decades ago, the length of the lease was of minimal concern. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Arthur extended the lease at the eleventh hour last May. Arthur and the freeholder via the management company eventually settled on a premium of £5,000 . If the lease had gone to less than 80 years, the amount would have gone up by at least £1,075.
In 2011 we were contacted by Dr Nathan Miller who, having owned a recently refurbished apartment in Waddington in May 2005. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Waddington with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease expiry date was in 2088. Considering the 62 years left we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.
In 2013 we were phoned by Mr and Mrs. G Martinez who, having purchased a first floor apartment in Waddington in July 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Waddington with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2077. Given that there were 51 years left we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.