When it comes to long leasehold property in Waterbeach, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Waterbeach with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the current statute the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Waterbeach with over one hundred years remaining on the lease are sometimes referred to as ‘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 estate charges warrant 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 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; |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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.
Last year Dylan, came very close to the eighty-year mark with the lease on his two bedroom apartment in Waterbeach. Having bought his flat two decades ago, the unexpired term was of little significance. Luckily, he became aware that he needed to take steps soon on a lease extension. Dylan extended the lease at the eleventh hour last June. Dylan and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had descended to less than 80 years, the amount would have become more costly by a minimum £1,050.
In 2011 we were contacted by Mr and Mrs. F Girard who, having took over the lease of a first floor apartment in Waterbeach in October 2001. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable flats in Waterbeach with a long lease were valued about £186,000. The mid-range ground rent payable was £65 collected quarterly. The lease terminated on 7 May 2081. Having 58 years outstanding we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus professional charges.
Last Spring we were phoned by Mrs Katie Gray , who owned a one bedroom flat in Waterbeach in March 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Waterbeach with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease end date was in 2092. Taking into account 69 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.