When it comes to residential leasehold property in Warfield, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Anyone in Warfield with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Warfield with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you increased control over the value of your Warfield leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her purpose-built apartment in Warfield, Louise commenced the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work was concluded in April 2011. The landlord’s charges were negotiated to slightly above 700 pounds.
In 2012 we were e-mailed by Dr Y Stewart who, having purchased a newly refurbished apartment in Warfield in October 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Warfield with 100 year plus lease were valued about £173,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease came to a finish on 4 October 2080. Having 55 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
Mr and Mrs. G Edwards completed a one bedroom flat in Warfield in July 2004. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative premises in Warfield with 100 year plus lease were valued around £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2091. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.