Warfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Warfield enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Warfield you really ought to check if your lease has between 70 and ninety years left. There are compelling reasons why a Warfield leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is generally considered that a property with over one hundred 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 equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Warfield leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her purpose-built flat in Warfield, Elizabeth started the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in August 2014. The landlord’s charges were kept to an absolute minimum.
Dr Joseph Adams owned a basement flat in Warfield in September 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical properties in Warfield with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 billed yearly. The lease expired in 2076. Given that there were 51 years remaining we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.
In 2012 we were contacted by Mr and Mrs. V Girard who, having took over the lease of a ground floor flat in Warfield in May 1999. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Warfield with a long lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease concluded in 2087. Given that there were 62 years unexpired we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of legals.