Waterloo leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Waterloo will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Waterloo with more than 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Waterloo,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Waterloo valuers.
Last October Jude, came very near to the 80-year mark with the lease on his ground floor apartment in Waterloo. Having purchased his home twenty years previously, the length of the lease was of no bearing. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Jude arranged for a lease extension just in the nick of time last July. Jude and the landlord who owned the flat above in the end settled on sum of £5,500 . If the lease had dipped below eighty years, the premium would have become more costly by at least £1,050.
In 2009 we were called by Dr Joseph King who, having bought a purpose-built flat in Waterloo in October 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Waterloo with a long lease were valued about £295,000. The average ground rent payable was £50 collected yearly. The lease concluded on 5 February 2101. Given that there were 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Last Christmas we were contacted by Mr M François , who purchased a one bedroom apartment in Waterloo in January 2012. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Waterloo with 100 year plus lease were worth £250,400. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2090. Taking into account 64 years left we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including fees.