The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Warminster may extend the lease for a further ninety years under legislation. Do think carefully before delaying your Warminster lease extension. Putting off the costs now simply escalates the premium you will ultimately have to pay for a lease extension.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | 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. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Ryan owned a conversion flat in Warminster on the market with a lease of a few days over fifty eight years unexpired. Ryan informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were called by Dr V Wright who, having moved into a ground floor flat in Warminster in April 2012. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar residencies in Warminster with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 18 May 2084. Considering the 59 years outstanding we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.
In 2009 we were approached by Mr and Mrs. K Mitchell who, having took over the lease of a studio flat in Warminster in April 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Warminster with an extended lease were valued about £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease end date was in 2104. Taking into account 79 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.