When it comes to residential leasehold property in Warsash, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Residents in Warsash with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has below 80 years outstanding, under the relevant Act the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 increased control over the value of your Warsash leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a conversion flat in Warsash being marketed with a lease of a few days over sixty years left. Leon informally spoke with his freeholder being a well known Manchester-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 an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Mr Reuben Miller , who owned a one bedroom apartment in Warsash in November 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative flats in Warsash with an extended lease were in the region of £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease ran out in 2081. Having 56 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
In 2013 we were approached by Mr and Mrs. L Nelson who, having acquired a one bedroom flat in Warsash in January 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Warsash with a long lease were worth £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2101. Given that there were 76 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.