Waolstenholme leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Waolstenholme tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Waolstenholme you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Waolstenholme with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Waolstenholme leasehold, as your property will be more valuable and marketable in relation to the 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.
Following protracted negotiations with the landlord of her ground floor apartment in Waolstenholme, Jodie commenced the lease extension process as the eighty year mark was fast advancing. The legal work completed in February 2009. The landlord’s charges were negotiated to a tad over 650 pounds.
In 2011 we were e-mailed by Mr and Mrs. Y Roux who, having bought a purpose-built apartment in Waolstenholme in October 1996. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical residencies in Waolstenholme with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed quarterly. The lease expiry date was in 2093. Taking into account 67 years remaining we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus legals.
In 2010 we were phoned by Mr and Mrs. R Thompson who, having owned a one bedroom apartment in Waolstenholme in November 2004. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar homes in Waolstenholme with a long lease were in the region of £206,200. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed in 2082. Taking into account 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.