For those whose Waterlooville home is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Waterlooville with more than one hundred years outstanding 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Waterlooville leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Aaron, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Waterlooville. Having purchased his flat two decades ago, the unexpired term was of little interest. As luck would have it, he recognised he needed to take steps soon on a lease extension. Aaron extended the lease just in the nick of time in July. Aaron and the landlord in the end agreed on an amount of £6,000 . If the lease had descended lower than eighty years, the premium would have increased by at least £1,050.
Last Christmas we were contacted by Mr and Mrs. E Petit , who completed a recently refurbished apartment in Waterlooville in February 2012. The question was if we could approximate the premium would be for a ninety year lease extension. Similar homes in Waterlooville with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 invoiced monthly. The lease finished in 2101. Given that there were 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last Summer we were approach by Dr H Jackson , who bought a one bedroom apartment in Waterlooville in February 1998. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Similar premises in Waterlooville with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out on 25 June 2090. Considering the 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of expenses.