Wargrave leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Wargrave will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Wargrave with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake Wargrave 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 conveyancing solicitor we work with provide it.
Connor owned a conversion apartment in Wargrave on the market with a lease of fraction over 72 years unexpired. Connor on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were called by Mr R Bernard who, having bought a studio apartment in Wargrave in January 2000. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Wargrave with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 17 October 2089. Taking into account 63 years unexpired we estimated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including fees.
Last Winter we were approach by Mr E Miller , who took over the lease of a studio apartment in Wargrave in October 2008. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical premises in Wargrave with a long lease were valued around £270,000. The average amount of ground rent was £55 billed per annum. The lease expired in 2100. Having 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.