Waterbeach leases on residential properties are gradually diminishing in 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. Legislation has been in place for sometime now which entitles qualifying Waterbeach residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Waterbeach you should see if your lease has between 70 and 90 years left. There are good reasons why a Waterbeach leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake Waterbeach 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.
Caleb was the the leasehold proprietor of a high value flat in Waterbeach being marketed with a lease of a few days over fifty eight years left. Caleb informally contacted his landlord being a well known London-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 an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and secured satisfactory deal informally and sell the flat.
In 2009 we were e-mailed by Dr Jude Fournier who, having was assigned a lease of a ground floor apartment in Waterbeach in April 2002. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparative flats in Waterbeach with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out on 3 February 2097. Taking into account 71 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Mr Felix Jackson acquired a ground floor flat in Waterbeach in April 2009. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Waterbeach with a long lease were valued around £254,200. The average amount of ground rent was £60 billed monthly. The lease finished on 2 October 2077. Having 51 years unexpired we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of fees.