Waterlooville leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Waterlooville residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Waterlooville you must see if your lease has between 70 and ninety years left. There are good reasons why a Waterlooville flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Waterlooville with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 procure Waterlooville 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 conveyancing solicitor we work with provide it.
During the course of the last few months Aarav, came precariously close to the eighty-year mark with the lease on his garden flat in Waterlooville. Having bought his property 19 years previously, the length of the lease was of little relevance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Aarav arranged for a lease extension at the eleventh hour in May. Aarav and the freeholder via the management company subsequently agreed on an amount of £6,000 . If the lease had fallen below 80 years, the premium would have escalated by a minimum £1,150.
In 2012 we were e-mailed by Mr and Mrs. B Reed who, having took over the lease of a basement flat in Waterlooville in March 2008. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar flats in Waterlooville with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished in 2076. Having 51 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Ms P Ali acquired a ground floor apartment in Waterlooville in April 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Waterlooville with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 billed yearly. The lease expired on 17 March 2096. Taking into account 71 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.