For those whose Waddon home is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Lease extensions in Waddon can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Waddon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the landlord of her one bedroom apartment in Waddon, Charlotte started the lease extension process as the 80 year mark was quickly coming. The lease extension was finalised in March 2005. The freeholder’s fees were restricted to about 500 pounds.
Mr R Bernard acquired a one bedroom flat in Waddon in June 2004. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Waddon with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2103. Having 78 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
An example of a Freehold Enfranchisement case for a Waddon flat is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case affected 4 flats. The number of years remaining on the existing lease(s) was 98 years.