Warkworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Warkworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Warkworth you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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 lawyer we work with provide it.
In 2014 Charlie, started to get close to the eighty-year threshold with the lease on his first floor flat in Warkworth. In buying his flat two decades ago, the lease term was of no interest. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Charlie was able to extend his lease at the eleventh hour last August. Charlie and the landlord subsequently settled on an amount of £5,500 . If he not met the deadline, the figure would have increased by a minimum £850.
Last year we were phoned by Ms V Davies , who completed a one bedroom flat in Warkworth in April 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Warkworth with a long lease were worth £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease elapsed on 20 January 2079. Having 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of costs.
In 2014 we were approached by Mr Kian Vincent who, having bought a garden apartment in Warkworth in August 2005. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Warkworth with a long lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated on 15 August 2090. Taking into account 64 years outstanding we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of costs.