There is no doubt about it a leasehold property in Waterloo is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Waterloo will qualify for this right; however a lawyer can confirm if 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.
Leasehold properties in Waterloo with over 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Waterloo leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Cameron owned a 2 bedroom apartment in Waterloo on the market with a lease of a few days over fifty eight years outstanding. Cameron on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were e-mailed by Dr A Morris , who bought a garden apartment in Waterloo in March 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Waterloo with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 invoiced yearly. The lease terminated in 2095. Having 70 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
In 2013 we were approached by Ms Phoebe Brown who, having was assigned a lease of a first floor apartment in Waterloo in May 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Waterloo with a long lease were valued around £218,400. The average ground rent payable was £60 billed yearly. The lease terminated on 2 May 2084. Given that there were 59 years unexpired we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.