Warfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Warfield enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Warfield you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Warfield flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 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. |
Regardless of whether you are a tenant or a freeholder in Warfield,the lease extension experts that we work with will always be willing 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.
Off the back of protracted negotiations with the freeholder of her studio flat in Warfield, Paige commenced the lease extension process as the eighty year threshold was quickly advancing. The transaction was finalised in March 2015. The freeholder’s charges were negotiated to approximately 600 pounds.
Last Winter we were e-mailed by Mr H Ward , who owned a one bedroom flat in Warfield in March 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable premises in Warfield with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease finished on 5 September 2103. Considering the 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.
Mr and Mrs. I Bonnet completed a first floor flat in Warfield in January 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Warfield with a long lease were worth £191,000. The mid-range amount of ground rent was £65 collected yearly. The lease concluded in 2083. Given that there were 58 years outstanding we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.