Unfortunately that a Wargrave residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wargrave property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Wargrave will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Wargrave with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a freeholder in Wargrave,the lease extension lawyers 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 Wargrave valuers.
Lucas was the the leasehold proprietor of a conversion apartment in Wargrave being marketed with a lease of just over 61 years left. Lucas informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Spring we were approach by Mr and Mrs. J Sánchez , who completed a one bedroom flat in Wargrave in July 2012. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative homes in Wargrave with 100 year plus lease were valued around £208,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 28 October 2086. Having 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus expenses.
Last Winter we were approach by Dr Rachael García , who completed a purpose-built apartment in Wargrave in November 1998. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Wargrave with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended in 2097. Having 72 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.