There is no doubt about it a leasehold property in Washington is a wasting asset as a result of the shortening lease. If the residual term has, beyond 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Washington will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
The conveyancers that we work with handle Washington 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 conveyancing solicitor we work with provide it.
In 2014 Reuben, started to get close to the eighty-year mark with the lease on his ground floor apartment in Washington. Having bought his home twenty years previously, the length of the lease was of no relevance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Reuben was able to extend his lease just ahead of time last September. Reuben and the landlord ultimately settled on sum of £6,000 . If he not met the deadline, the figure would have become more costly by at least £975.
Dr Phoebe Roux completed a one bedroom apartment in Washington in July 2010. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar residencies in Washington with a long lease were valued around £181,600. The average amount of ground rent was £55 invoiced yearly. The lease lapsed on 2 September 2077. Given that there were 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.
Last Christmas we were approach by Dr K Simon , who moved into a garden apartment in Washington in May 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar properties in Washington with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2097. Considering the 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.