There is no doubt about it a leasehold flat or house in Werrington is a wasting asset as a result of the shortening lease. Where the residual term has, more than one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Werrington will qualify for this right; that being said a conveyancer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Werrington 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.
Theo owned a studio flat in Werrington on the market with a lease of just over 59 years left. Theo on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2010 we were contacted by Mr and Mrs. B Reed who, having bought a ground floor apartment in Werrington in April 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Werrington with a long lease were in the region of £201,200. The mid-range ground rent payable was £55 billed yearly. The lease terminated in 2080. Considering the 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.
In 2014 we were phoned by Dr Ella Cook who, having completed a studio apartment in Werrington in August 2009. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Werrington with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2100. Given that there were 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.