The value of Warfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Warfield with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Warfield can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Warfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Charlie, started to get close to the eighty-year mark with the lease on his first floor flat in Warfield. In buying his home two decades ago, the length of the lease was of minimal significance. by good luck, he realised he needed to take action soon on a lease extension. Charlie arranged for a lease extension at the eleventh hour in May. Charlie and the freeholder via the management company eventually agreed on a premium of £6,000 . If the lease had slid to less than eighty years, the premium would have become more exhorbitant by a minimum £975.
In 2014 we were phoned by Dr William Reed who, having completed a purpose-built flat in Warfield in March 2003. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Warfield with a long lease were in the region of £200,800. The average ground rent payable was £65 billed quarterly. The lease terminated on 14 April 2086. Having 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus expenses.
Mr Charlie García owned a recently refurbished flat in Warfield in July 1995. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar premises in Warfield with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded on 15 April 2097. Given that there were 71 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.