Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Waterloo. Inevitably, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Waterloo have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Waterloo lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
Leasehold properties in Waterloo with more than one hundred years left on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Waterloo,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Waterloo valuers.
Owen owned a studio flat in Waterloo being sold with a lease of a little over fifty eight years outstanding. Owen on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to invoke his statutory right. Owen procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr and Mrs. F Roux took over the lease of a one bedroom flat in Waterloo in May 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Waterloo with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 invoiced yearly. The lease ran out on 8 March 2076. Taking into account 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
Mr and Mrs. L Mason purchased a newly refurbished apartment in Waterloo in April 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Waterloo with a long lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease expired in 2096. Taking into account 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.