Waterbeach leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Waterbeach will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Waterbeach with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | 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. |
| 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. |
Engaging our service will provide you better control over the value of your Waterbeach leasehold, as your property will be more valuable and saleable in terms of 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.
Off the back of lengthy correspondence with the landlord of her purpose-built flat in Waterbeach, Natasha initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work was concluded in August 2005. The landlord’s charges were negotiated to about 550 GBP.
Last Christmas we were e-mailed by Mr and Mrs. W Howard , who acquired a garden flat in Waterbeach in September 2009. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Waterbeach with an extended lease were worth £261,600. The mid-range ground rent payable was £60 collected per annum. The lease termination date was on 12 April 2078. Taking into account 52 years left we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus professional charges.
Last Autumn we were approach by Mr Benjamin Lefebvre , who bought a ground floor flat in Waterbeach in May 2007. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative flats in Waterbeach with an extended lease were valued about £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished in 2089. Given that there were 63 years left we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of costs.