Unfortunately that a Warfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Warfield property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Warfield will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Warfield with over 100 years unexpired on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Warfield leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold owner of a studio flat in Warfield being sold with a lease of just over fifty eight years left. Jacob informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
Dr Jessica Cook moved into a one bedroom apartment in Warfield in July 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Warfield with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease lapsed on 18 October 2095. Having 69 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
In 2009 we were called by Dr A Gray who, having acquired a ground floor flat in Warfield in January 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical properties in Warfield with a long lease were worth £285,000. The average ground rent payable was £55 collected per annum. The lease finished on 15 June 2106. Considering the 80 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.