When it comes to long leasehold premises in Warsash, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years left. Residents in Warsash with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Warsash 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.
Ethan was the the leasehold owner of a 2 bedroom apartment in Warsash being sold with a lease of a few days over 59 years outstanding. Ethan informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mrs W Cook completed a one bedroom apartment in Warsash in February 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Warsash with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2106. Taking into account 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Dr Charlie Hernández moved into a recently refurbished flat in Warsash in November 2000. The question was if we could approximate the price could be to prolong the lease by ninety years. Similar flats in Warsash with a long lease were in the region of £280,000. The average ground rent payable was £45 collected annually. The lease end date was on 4 August 2095. Considering the 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.