The value of Waterbeach leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
---|---|
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Yorkshire 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. |
Lease extensions in Waterbeach can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Waterbeach lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a studio apartment in Waterbeach being sold with a lease of a little over fifty eight years left. Nathan on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were called by Mr H Peterson who, having was assigned a lease of a studio apartment in Waterbeach in October 2001. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Waterbeach with an extended lease were valued around £249,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed on 8 October 2075. Having 51 years remaining we calculated the compensation to the landlord to extend the lease to be within £42,800 and £49,400 plus fees.
In 2009 we were called by Mr and Mrs. F Pérez who, having completed a first floor apartment in Waterbeach in September 2000. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Waterbeach with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 collected annually. The lease concluded on 14 October 2085. Given that there were 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.