There is no doubt about it a leasehold flat or house in Waterloo is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Waterloo will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank |
The conveyancing solicitors that we work with procure Waterloo 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 conveyancer we work with provide it.
Ibrahim owned a high value apartment in Waterloo on the market with a lease of a little over sixty years remaining. Ibrahim on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were phoned by Mr and Mrs. I François who, having completed a one bedroom flat in Waterloo in May 2006. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable premises in Waterloo with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2106. Given that there were 80 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Dr Austin Adams completed a ground floor flat in Waterloo in February 2006. The question was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Waterloo with a long lease were worth £275,000. The average amount of ground rent was £45 collected every twelve months. The lease elapsed on 13 May 2095. Considering the 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.