The closer a residential lease in Warlingham gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Warlingham will meet the qualifying criteria; that being said a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Warlingham with more than 100 years unexpired on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Warlingham,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 experience and the close ties they enjoy with Warlingham valuers.
Jack owned a 2 bedroom apartment in Warlingham on the market with a lease of a few days over fifty eight years unexpired. Jack informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2012 we were contacted by Mr and Mrs. H Jackson who, having completed a garden flat in Warlingham in June 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Identical flats in Warlingham with a long lease were in the region of £176,200. The average ground rent payable was £65 invoiced annually. The lease terminated on 3 January 2082. Given that there were 56 years left we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.
An example of a Freehold Enfranchisement case for a Warlingham premises 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 residue of the current lease was 78.32 years.