Waterbeach leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Waterbeach will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Waterbeach with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in 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. |
| Chelsea 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. |
| 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. |
Using our service gives you enhanced control over the value of your Waterbeach leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful negotiations with the freeholder of her studio flat in Waterbeach, Nicole initiated the lease extension process as the eighty year deadline was fast approaching. The lease extension was concluded in January 2014. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were approach by Mr O Girard , who purchased a ground floor apartment in Waterbeach in January 2006. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Identical homes in Waterbeach with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced annually. The lease ended on 19 April 2085. Considering the 59 years unexpired we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus legals.
Dr O Wright moved into a purpose-built flat in Waterbeach in August 2011. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative premises in Waterbeach with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed yearly. The lease terminated on 18 September 2096. Given that there were 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of legals.