With a domestic leasehold premises in Waterhouses, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking 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 left. Residents in Waterhouses with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Waterhouses with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Waterhouses leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Evan, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Waterhouses. Having bought his property two decades ago, the length of the lease was of no interest. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Evan extended the lease just under the wire in January. Evan and the freeholder via the management company in the end agreed on an amount of £5,000 . If he had missed the deadline, the figure would have become more costly by at least £1,050.
Last Summer we were e-mailed by Mr and Mrs. N Ward , who acquired a first floor apartment in Waterhouses in March 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Waterhouses with a long lease were in the region of £171,800. The average ground rent payable was £55 invoiced quarterly. The lease expired in 2076. Considering the 50 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus professional charges.
Mrs Freya Lee moved into a ground floor apartment in Waterhouses in March 2012. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Waterhouses with a long lease were in the region of £280,000. The average amount of ground rent was £45 billed yearly. The lease terminated in 2096. Given that there were 70 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.