For those whose Waterhouses home is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies in Waterhouses with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Waterhouses can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Waterhouses lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a conversion apartment in Waterhouses on the market with a lease of just over sixty years remaining. Harry on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr R Torres bought a one bedroom flat in Waterhouses in May 2012. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Waterhouses with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 9 August 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Mrs U Khan completed a ground floor apartment in Waterhouses in April 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Waterhouses with an extended lease were valued about £216,000. The average ground rent payable was £60 collected quarterly. The lease finished on 3 August 2084. Taking into account 58 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.