There is no doubt about it a leasehold flat or house in Waterloo is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Waterloo will meet the qualifying criteria; that being said a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Waterloo with over 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Waterloo can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Waterloo lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold proprietor of a 2 bedroom apartment in Waterloo being sold with a lease of a little over 59 years outstanding. Lucas on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert advice and secured satisfactory deal informally and readily saleable.
Dr Holly Ali bought a first floor flat in Waterloo in October 2009. The question was if we could estimate the premium could be to extend the lease by 90 years. Identical residencies in Waterloo with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2088. Having 63 years unexpired we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
Dr O Fournier acquired a purpose-built apartment in Waterloo in March 1996. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparative flats in Waterloo with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed per annum. The lease finished on 28 November 2077. Considering the 52 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.