Warfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Warfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Warfield you should investigate if your lease has between 70 and 90 years left. There are good reasons why a Warfield leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Warfield with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Warfield,the lease extension solicitors that we work with will always be prepared 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.
Last year Andrew, came seriously near to the 80-year mark with the lease on his studio apartment in Warfield. In buying his flat two decades ago, the length of the lease was of no concern. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. Andrew was able to extend his lease just under the wire last July. Andrew and the freeholder subsequently agreed on sum of £5,000 . If the lease had dipped lower than 80 years, the price would have escalated by a minimum £950.
Mr and Mrs. N Stewart bought a first floor apartment in Warfield in April 2008. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable residencies in Warfield with an extended lease were in the region of £210,600. The average amount of ground rent was £45 billed per annum. The lease concluded in 2088. Taking into account 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.
In 2014 we were phoned by Dr James Reed who, having was assigned a lease of a purpose-built flat in Warfield in May 2008. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Warfield with an extended lease were valued about £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated in 2099. Considering the 73 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.