The closer a domestic lease in Waterhouses gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Waterhouses will qualify for this right; however a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Waterhouses with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake Waterhouses 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 lawyer we work with provide it.
Last October Zachary, came dangerously close to the eighty-year mark with the lease on his first floor apartment in Waterhouses. In buying his home two decades ago, the length of the lease was of no relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Zachary extended the lease just under the wire in June. Zachary and the landlord in the end agreed on the final figure of £6,000 . If the lease had dipped lower than 80 years, the premium would have become more costly by at least £950.
In 2013 we were called by Ms U Mason who, having moved into a one bedroom apartment in Waterhouses in October 2006. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Waterhouses with a long lease were valued around £181,600. The mid-range ground rent payable was £55 collected monthly. The lease elapsed on 18 April 2077. Considering the 52 years outstanding we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. J Martinez owned a one bedroom apartment in Waterhouses in October 2004. We are asked if we could approximate the price could be for a 90 year lease extension. Similar properties in Waterhouses with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 billed per annum. The lease finished in 2097. Taking into account 72 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.