Chances are that where you own a flat in Waddon you actually own a long leasehold interest over your property
Leasehold premises in Waddon with in excess of one hundred years remaining 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you better control over the value of your Waddon leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her studio flat in Waddon, Jodie initiated the lease extension process as the eighty year mark was fast approaching. The legal work completed in June 2008. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. S Moreau who, having owned a one bedroom flat in Waddon in July 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Waddon with an extended lease were in the region of £208,600. The average amount of ground rent was £60 billed yearly. The lease terminated on 26 May 2082. Taking into account 57 years unexpired we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Waddon property 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.