The re-sale value of a leasehold property in Warsash is impacted by how long the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation entitles Warsash qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Warsash with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Warsash,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Warsash valuers.
Jackson was the the leasehold owner of a studio apartment in Warsash being sold with a lease of fraction over 59 years left. Jackson on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Dr P Rodríguez completed a newly refurbished apartment in Warsash in June 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Warsash with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 collected quarterly. The lease expired in 2093. Taking into account 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
In 2010 we were called by Ms Mia Morgan who, having completed a one bedroom flat in Warsash in June 2002. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Warsash with a long lease were in the region of £208,600. The average ground rent payable was £60 billed quarterly. The lease ended in 2082. Having 57 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.