It’s an underpublicised certainty that a Waddon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Waddon property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Waddon will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Waddon with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Waddon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Waddon valuers.
In the wake of 6 months of lengthy correspondence with the freeholder of her garden apartment in Waddon, Charlotte commenced the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in September 2009. The landlord’s costs were restricted to under 450 GBP.
Last Christmas we were phoned by Dr U Bailey , who moved into a one bedroom apartment in Waddon in April 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical premises in Waddon with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 collected per annum. The lease termination date was in 2082. Having 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.
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 related to 4 flats. The unexpired residue of the current lease was 98 years.