Stop! Your Lease Extension in Warkworth Could Be FREE

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Many leaseholders in Warkworth are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Warkworth has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Warkworth lease extension

Main reasons to commence your Warkworth lease extension today:

Increase your lease and increase your Warkworth property value

Warkworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Warkworth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Warkworth you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

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

Lenders will not issue a mortgage on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.

Why use us for your lease extension in Warkworth?

Engaging our service will provide you better control over the value of your Warkworth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Warkworth Lease Extension Case Studies:

Michael, Warkworth, Northumberland

Last October Michael, came perilously close to the eighty-year threshold with the lease on his first floor apartment in Warkworth. Having purchased his flat 19 years ago, the unexpired term was of little relevance. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Michael was able to extend his lease just ahead of time in September. Michael and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £975.

Warkworth case:

In 2009 we were called by Mr and Mrs. U King who, having bought a newly refurbished apartment in Warkworth in March 1996. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Warkworth with an extended lease were valued around £254,200. The average ground rent payable was £60 billed every twelve months. The lease lapsed on 27 October 2077. Considering the 51 years left we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus legals.

Warkworth case:

Dr Ellen Wilson owned a one bedroom flat in Warkworth in July 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Warkworth with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2088. Taking into account 62 years remaining we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.