Chances are that if you own a flat in Warminster you actually own a long leasehold interest over your property
Leasehold properties in Warminster with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Halifax | 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. |
Engaging our service gives you enhanced control over the value of your Warminster leasehold, as your property will be more valuable and saleable in relation to the 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.
Teddy owned a 2 bedroom flat in Warminster on the market with a lease of a little over 59 years unexpired. Teddy informally approached his freeholder a well known London-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 £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were phoned by Mr and Mrs. R André , who moved into a basement flat in Warminster in October 1998. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Warminster with a long lease were valued about £275,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2095. Considering the 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2010 we were contacted by Ms H Turner who, having completed a recently refurbished flat in Warminster in January 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Warminster with a long lease were valued around £216,000. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish on 26 May 2084. Taking into account 58 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.