Waterloo leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Waterloo tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Waterloo you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| 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. |
The conveyancers that we work with handle 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.
Lucas owned a conversion apartment in Waterloo being marketed with a lease of just over 59 years left. Lucas on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Mr N White moved into a studio apartment in Waterloo in January 2010. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative premises in Waterloo with an extended lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease lapsed on 20 August 2099. Having 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Spring we were approach by Dr Harvey Ramírez , who completed a purpose-built apartment in Waterloo in April 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical premises in Waterloo with a long lease were valued around £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out on 1 August 2088. Having 62 years unexpired we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.