As the the remaining lease term of a Worcester Park domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 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 left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Worcester Park will qualify for this right; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Worcester Park,the lease extension solicitors 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 Worcester Park valuers.
Half a year ago Adam, came precariously close to the 80-year threshold with the lease on his one bedroom flat in Worcester Park. In buying his property 19 years ago, the unexpired term was of little relevance. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Adam was able to extend his lease just ahead of time last May. Adam and the freeholder eventually settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £1,000.
Mr and Mrs. N Mason completed a ground floor apartment in Worcester Park in May 2003. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Worcester Park with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease end date was in 2085. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus expenses.
An example of a Lease Extension decision for a Worcester Park flat is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case related to 1 flat. The unexpired term as at the valuation date was 60.43 years.