The re-sale value of a leasehold property in Waddon is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised well before the 80 year cut off point. Current legislation entitles Waddon qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Waddon with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Waddon leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen was the the leasehold proprietor of a conversion apartment in Waddon on the market with a lease of just over sixty years remaining. Owen on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2009 we were phoned by Mr D Flores who, having was assigned a lease of a newly refurbished apartment in Waddon in October 2008. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable premises in Waddon with an extended lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 2 August 2101. Given that there were 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
An example of a Freehold Enfranchisement case for a Waddon residence 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 unexpired residue of the current lease was 98 years.