It’s an underpublicised truth that a Warfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Warfield property market.Once your lease nears 85ish years, you should 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 slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Warfield will be able to extend under the legislation; however a conveyancer 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 lawyer for the duration of the process.
Leasehold residencies in Warfield with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Warfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Warfield valuers.
In recent months Felix, came dangerously close to the eighty-year threshold with the lease on his garden flat in Warfield. In buying his property 19 years ago, the length of the lease was of little interest. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Felix was able to extend his lease at the eleventh hour last July. Felix and the landlord subsequently agreed on sum of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,125.
In 2011 we were e-mailed by Ms W Morel who, having was assigned a lease of a studio flat in Warfield in September 1995. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Warfield with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2099. Taking into account 73 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Last July we were called by Dr H Bailey , who acquired a purpose-built apartment in Warfield in June 2000. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Warfield with an extended lease were worth £264,000. The mid-range ground rent payable was £60 collected quarterly. The lease concluded on 3 October 2079. Given that there were 53 years left we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of costs.