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 taken for granted in the first few years due to the deflation being disguised by increases in the Warfield property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty 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 additional value that a lease extension will add the property The majority of flat owners in Warfield will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective 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 experience and the close ties they enjoy with Warfield valuers.
Luke owned a high value apartment in Warfield being sold with a lease of a few days over 72 years unexpired. Luke informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last July we were e-mailed by Mrs P Gómez , who completed a garden apartment in Warfield in August 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Warfield with an extended lease were valued about £265,000. The mid-range ground rent payable was £55 collected quarterly. The lease termination date was on 3 November 2099. Taking into account 74 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
In 2014 we were phoned by Dr Nicole Davies who, having completed a one bedroom apartment in Warfield in January 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Warfield with an extended lease were worth £166,400. The average ground rent payable was £60 billed every twelve months. The lease elapsed on 9 July 2079. Taking into account 54 years outstanding we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.