Wargrave leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Wargrave enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wargrave you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Wargrave with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The lawyers that we work with undertake Wargrave lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
George was the the leasehold proprietor of a studio apartment in Wargrave on the market with a lease of a little over sixty years remaining. George on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to invoke his statutory right. George procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2014 we were e-mailed by Mr and Mrs. A Cox who, having purchased a one bedroom flat in Wargrave in November 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Wargrave with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 18 February 2095. Considering the 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Mr and Mrs. J García completed a one bedroom apartment in Wargrave in March 1997. The question was if we could approximate the price would be to prolong the lease by ninety years. Similar homes in Wargrave with a long lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease expired in 2075. Taking into account 50 years outstanding we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including expenses.