The market value of a leasehold property in Warkworth depends on how many years the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year mark. Statute entitles Warkworth qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Warkworth can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Warkworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her basement apartment in Warkworth, Mollie commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension completed in August 2007. The freeholder’s fees were restricted to less than 650 pounds.
In 2009 we were called by Mr and Mrs. T Nguyen who, having acquired a first floor flat in Warkworth in May 2001. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Warkworth with a long lease were worth £176,200. The average ground rent payable was £65 billed per annum. The lease termination date was on 21 May 2081. Having 56 years unexpired we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of fees.
Dr O Sánchez purchased a purpose-built flat in Warkworth in October 2007. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparable homes in Warkworth with a long lease were worth £242,600. The average ground rent payable was £45 collected monthly. The lease concluded on 10 April 2092. Having 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of expenses.