When it comes to residential leasehold premises in Waddington, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Waddington with a lease nearing 81 years left should seriously think of extending it sooner rather than later. When the lease term has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Waddington with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Waddington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the freeholder of her purpose-built apartment in Waddington, Isabel started the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was concluded in October 2012. The freeholder’s costs were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. D Morgan , who owned a ground floor apartment in Waddington in February 2012. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative flats in Waddington with a long lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished on 20 March 2081. Taking into account 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.
Mr and Mrs. U Rivera was assigned a lease of a basement flat in Waddington in November 1999. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Waddington with a long lease were valued about £295,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2101. Having 75 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.