Warfield residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Warfield can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Warfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron was the the leasehold proprietor of a studio flat in Warfield on the market with a lease of a little over fifty eight years unexpired. Aaron on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last Spring we were approach by Mr and Mrs. I Gray , who owned a basement flat in Warfield in January 2002. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Warfield with an extended lease were in the region of £183,600. The average ground rent payable was £65 billed annually. The lease expired in 2083. Taking into account 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
In 2011 we were e-mailed by Mr and Mrs. D King who, having acquired a recently refurbished apartment in Warfield in February 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Warfield with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish on 7 November 2094. Having 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.