Main reasons to commence your Warkworth lease extension

Top reasons for lease extension now:

A Warkworth leasehold property depreciates with the years remaining on the lease.

Warkworth leases on domestic deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Warkworth will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.

Warkworth property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with in excess of one hundred 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 in the future.

Mortgage lenders will not finance a property on a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once the residual lease term goes beneath a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years suitable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Warkworth home.

Get in touch with one of our Warkworth lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Warkworth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Warkworth valuers.

Warkworth Lease Extension Case Summaries:

Katie, Warkworth, Northumberland,

In the wake of 6 months of lengthy negotiations with the freeholder of her ground floor apartment in Warkworth, Katie commenced the lease extension process as the eighty year mark was swiftly nearing. The lease extension completed in September 2008. The freeholder’s charges were kept to an absolute minimum.

Warkworth case:

In 2011 we were called by Dr Seth Bonnet who, having purchased a ground floor flat in Warkworth in February 2000. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Warkworth with a long lease were worth £227,800. The average amount of ground rent was £45 collected annually. The lease expired in 2091. Taking into account 65 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.

Warkworth case:

In 2013 we were e-mailed by Mr E Hill who, having acquired a studio flat in Warkworth in June 2003. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical homes in Warkworth with a long lease were valued around £275,000. The average ground rent payable was £55 billed quarterly. The lease ended in 2102. Considering the 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.