The closer a domestic lease in Warkworth gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Warkworth will qualify for this right; however a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Warkworth 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.
Off the back of protracted negotiations with the freeholder of her studio flat in Warkworth, Phoebe started the lease extension process as the eighty year mark was swiftly advancing. The lease extension was finalised in September 2011. The landlord’s charges were kept to an absolute minimum.
In 2014 we were contacted by Ms C Brown who, having owned a garden apartment in Warkworth in September 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparable premises in Warkworth with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired in 2093. Considering the 68 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mrs K Smith moved into a purpose-built apartment in Warkworth in August 2005. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable residencies in Warkworth with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish on 13 January 2104. Taking into account 79 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.