It’s a harsh truth that a Waddington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Waddington property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to 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 Most leasehold owners in Waddington will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Engaging our service will provide 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 decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Eliot, came seriously close to the eighty-year threshold with the lease on his basement apartment in Waddington. Having purchased his flat 19 years previously, the lease term was of no significance. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Eliot extended the lease at the eleventh hour last August. Eliot and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had descended to less than 80 years, the sum would have become more exhorbitant by at least £950.
Last Spring we were e-mailed by Mr B Williams , who completed a studio flat in Waddington in June 2007. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative residencies in Waddington with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed quarterly. The lease expiry date was in 2080. Having 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.
Ms Bethany Gunderson moved into a first floor flat in Waddington in February 2011. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Waddington with a long lease were worth £295,000. The average ground rent payable was £45 invoiced monthly. The lease elapsed on 8 November 2100. Taking into account 74 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.