On the balance of probabilities where you own a flat in Waddington you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Waddington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Joshua, started to get close to the 80-year mark with the lease on his garden flat in Waddington. In buying his home 18 years previously, the unexpired term was of little importance. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Joshua was able to extend his lease just ahead of time in May. Joshua and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,100.
Last Autumn we were e-mailed by Mr Edward Lee , who moved into a one bedroom flat in Waddington in October 2011. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Waddington with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2085. Given that there were 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus professional charges.
Dr I Richardson owned a garden apartment in Waddington in September 2005. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Waddington with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished in 2105. Considering the 79 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.