The market value of a leasehold property in Warlingham is impacted by how long the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised ahead of the eighty year threshold. Statute enables Warlingham qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Warlingham with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Warlingham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Warlingham valuers.
Last October Stanley, started to get close to the 80-year mark with the lease on his first floor flat in Warlingham. In buying his property 19 years ago, the lease term was of minimal interest. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Stanley was able to extend his lease just under the wire last May. Stanley and the freeholder via the management company subsequently settled on an amount of £5,500 . If the lease had dropped below 80 years, the price would have gone up by a minimum £900.
Last month we were contacted by Ms T Taylor , who completed a one bedroom flat in Warlingham in April 1995. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative flats in Warlingham with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2098. Given that there were 73 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement case for a Warlingham residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case related to 6 flats. The unexpired term as at the valuation date was 78.32 years.