With a domestic leasehold property in Warlingham, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years remaining. Residents in Warlingham with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly 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.
| 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. |
| 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; |
| Chelsea Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Warlingham can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Warlingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Zachary, started to get near to the 80-year threshold with the lease on his studio flat in Warlingham. In buying his property twenty years previously, the lease term was of no significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Zachary extended the lease just under the wire in August. Zachary and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had slipped to less than 80 years, the amount would have become more costly by at least £1,000.
In 2012 we were phoned by Ms Danielle Alexander who, having moved into a garden apartment in Warlingham in January 2010. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Warlingham with a long lease were worth £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 8 May 2077. Having 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus costs.
An example of a Freehold Enfranchisement decision for a Warlingham flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired lease term was 78.32 years.