It’s a harsh certainty that a Warminster residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Warminster property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most flat owners in Warminster will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Warminster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Joshua was the the leasehold proprietor of a 2 bedroom flat in Warminster being sold with a lease of a little over 59 years outstanding. Joshua on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2013 we were called by Mr and Mrs. O Morris who, having moved into a ground floor flat in Warminster in May 2002. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical residencies in Warminster with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 14 June 2100. Considering the 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Last month we were phoned by Mr K Norbert , who bought a studio apartment in Warminster in January 2008. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Warminster with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 collected quarterly. The lease expiry date was on 11 August 2089. Given that there were 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.