Waddon residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Waddon with over one hundred years outstanding 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Waddon leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew owned a high value flat in Waddon on the market with a lease of just over fifty eight years left. Matthew on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last month we were phoned by Mr Luke Campbell , who acquired a newly refurbished flat in Waddon in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Waddon with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed per annum. The lease came to a finish in 2088. Considering the 62 years left we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.
An example of a Freehold Enfranchisement case for a Waddon premises 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.