When it comes to residential leasehold property in Waterbeach, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Waterbeach with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has under 80 years remaining, under the current Act the landlord can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Waterbeach with more than 100 years outstanding 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you increased control over the value of your Waterbeach leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a studio apartment in Waterbeach being sold with a lease of fraction over 59 years unexpired. Andrew informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were called by Mr and Mrs. L Roux who, having took over the lease of a purpose-built flat in Waterbeach in January 2000. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Waterbeach with an extended lease were valued around £225,400. The mid-range ground rent payable was £45 collected quarterly. The lease expired on 9 April 2090. Having 64 years remaining we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of costs.
Last Autumn we were contacted by Dr A Cooper , who took over the lease of a one bedroom flat in Waterbeach in April 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative properties in Waterbeach with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected monthly. The lease elapsed in 2101. Taking into account 75 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.