Waddington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Waddington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Waddington you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Waddington with more than 100 years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Waddington leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago William, started to get close to the 80-year threshold with the lease on his first floor flat in Waddington. Having purchased his property two decades ago, the unexpired term was of minimal importance. Luckily, he recognised he needed to take action soon on a lease extension. William extended the lease just in the nick of time in April. William and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he not met the deadline, the amount would have increased by at least £950.
Last Autumn we were contacted by Ms L Nelson , who purchased a one bedroom apartment in Waddington in February 2002. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar homes in Waddington with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease terminated on 3 August 2101. Having 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Dr N Allen owned a ground floor flat in Waddington in June 2012. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in Waddington with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 billed yearly. The lease end date was in 2090. Considering the 65 years outstanding we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus expenses.