The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Warsash may extend the lease for a further ninety years in accordance with statute. Do give careful consideration before delaying your Warsash lease extension. Putting off that expense today simply increases the amount you will eventually have to pay to extend the lease.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Warsash,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Warsash valuers.
During the course of the last few months Jake, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Warsash. In buying his home two decades ago, the length of the lease was of no concern. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Jake arranged for a lease extension just in the nick of time in July. Jake and the freeholder via the managing agents subsequently settled on the final figure of £6,000 . If he not met the deadline, the sum would have increased by a minimum £1,100.
In 2009 we were approached by Mrs M Gómez who, having moved into a one bedroom flat in Warsash in October 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Warsash with an extended lease were in the region of £290,000. The average amount of ground rent was £45 collected every twelve months. The lease elapsed on 20 January 2099. Taking into account 73 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2012 we were e-mailed by Dr D Lambert who, having completed a purpose-built flat in Warsash in June 1995. The question was if we could estimate the premium could be for a 90 year lease extension. Identical flats in Warsash with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish on 28 February 2088. Considering the 62 years remaining we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.