Top reasons for Warkworth lease extension

Top reasons for lease extension now:

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

The value of Warkworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than 80 years

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to issue a mortgage with a short lease

Almost all mortgage companies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies from lender to lender. A purchaser will no doubt find it difficult in obtaining a mortgage and this will result in your Warkworth property being difficult to dispose of or to obtain finance on.

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

Irrespective of whether you are a tenant or a landlord in Warkworth,the lease extension lawyers 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:

Jodie, Warkworth, Northumberland,

Subsequent to unsuccessful discussions with the landlord of her basement apartment in Warkworth, Jodie initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work completed in July 2014. The freeholder’s charges were restricted to less than 700 GBP.

Warkworth case:

Last year we were called by Mrs M Roux , who took over the lease of a purpose-built apartment in Warkworth in February 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative flats in Warkworth with an extended lease were valued around £275,000. The average ground rent payable was £55 collected yearly. The lease concluded in 2103. Given that there were 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.

Warkworth case:

Mr and Mrs. Y Parker took over the lease of a studio flat in Warkworth in July 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar premises in Warkworth with a long lease were worth £183,600. The average ground rent payable was £65 invoiced yearly. The lease ran out on 2 April 2083. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.