Warminster leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Warminster will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Warminster with in excess of 100 years remaining 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hugo, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Warminster. Having bought his flat two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he needed to take steps soon on a lease extension. Hugo extended the lease just in the nick of time in August. Hugo and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £1,050.
Last month we were contacted by Mr and Mrs. U Gray , who purchased a studio apartment in Warminster in September 2000. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Warminster with a long lease were worth £285,000. The average ground rent payable was £45 invoiced annually. The lease lapsed on 4 February 2096. Taking into account 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last year we were called by Mr and Mrs. N Wright , who moved into a one bedroom apartment in Warminster in April 2007. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar residencies in Warminster with 100 year plus lease were valued about £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 14 September 2085. Considering the 60 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus costs.