Warfield leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Warfield will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Warfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Warfield valuers.
Following protracted discussions with the landlord of her first floor apartment in Warfield, Amy commenced the lease extension process as the eighty year mark was fast advancing. The legal work was finalised in April 2015. The landlord’s charges were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. K Bennett who, having completed a ground floor flat in Warfield in October 1997. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar properties in Warfield with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2091. Having 65 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last August we were e-mailed by Dr V Morris , who acquired a garden apartment in Warfield in August 2007. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Warfield with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish in 2102. Taking into account 76 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.