Water Orton leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Water Orton will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Water Orton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Water Orton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Water Orton valuers.
After lengthy correspondence with the landlord of her first floor flat in Water Orton, Ashleigh commenced the lease extension process as the 80 year deadline was rapidly approaching. The transaction was concluded in February 2013. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Ms V King who, having bought a one bedroom flat in Water Orton in May 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative properties in Water Orton with a long lease were in the region of £225,800. The average ground rent payable was £60 billed quarterly. The lease concluded in 2086. Given that there were 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £25,700 and £29,600 plus professional charges.
Last Winter we were called by Mr and Mrs. R Gómez , who took over the lease of a newly refurbished flat in Water Orton in April 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Water Orton with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2106. Having 80 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.