The value of Wargrave leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wargrave can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience dealing with Wargrave lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper was the the leasehold owner of a 2 bedroom apartment in Wargrave on the market with a lease of fraction over 72 years remaining. Jasper on an informal basis contacted his landlord being a well known Manchester-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 a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
In 2012 we were approached by Mr and Mrs. D Bernard who, having owned a studio flat in Wargrave in January 2002. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative premises in Wargrave with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease end date was in 2093. Considering the 68 years left we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of legals.
Dr M Bailey was assigned a lease of a ground floor apartment in Wargrave in November 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Wargrave with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2104. Considering the 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.