Unfortunately that a Wargrave residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Wargrave property market.Once your lease gets to 85ish years, you should start considering 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 under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Wargrave will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with more than 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 property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Wargrave leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted negotiations with the freeholder of her one bedroom apartment in Wargrave, Samantha initiated the lease extension process as the eighty year threshold was fast approaching. The transaction was concluded in September 2006. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. W Martin who, having bought a basement flat in Wargrave in November 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Wargrave with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed every twelve months. The lease termination date was in 2098. Taking into account 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2013 we were called by Mr and Mrs. D Morel who, having owned a garden flat in Wargrave in September 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable properties in Wargrave with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed on 14 September 2078. Given that there were 53 years outstanding we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including professional charges.