Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Waddington. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Waddington have the legal entitlement to extend the lease for a further 90 years under statute. You should give careful attention before putting off your Waddington lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Waddington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leon owned a conversion apartment in Waddington on the market with a lease of fraction over sixty years outstanding. Leon informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Last Summer we were phoned by Mr and Mrs. E Nguyen , who was assigned a lease of a one bedroom flat in Waddington in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative premises in Waddington with 100 year plus lease were worth £250,400. The average ground rent payable was £65 invoiced every twelve months. The lease ran out on 24 October 2090. Taking into account 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Mrs Ashleigh Rodríguez acquired a studio flat in Waddington in July 1999. The question was if we could estimate the price could be to extend the lease by 90 years. Similar premises in Waddington with a long lease were worth £184,000. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 28 February 2079. Given that there were 53 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.