When it comes to residential leasehold premises in Warwick, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Leasehold owners in Warwick with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Warwick with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Warwick 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 conveyancing solicitor we work with provide it.
During the course of the last few months Jude, came seriously close to the eighty-year mark with the lease on his garden apartment in Warwick. Having bought his property 18 years ago, the lease term was of no significance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Jude arranged for a lease extension just ahead of time last January. Jude and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more costly by at least £875.
Mr and Mrs. K Rogers was assigned a lease of a basement flat in Warwick in September 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar homes in Warwick with an extended lease were worth £265,200. The average ground rent payable was £65 collected per annum. The lease end date was in 2092. Having 66 years unexpired we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.
Last Spring we were approach by Dr Eli Ward , who owned a ground floor flat in Warwick in June 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar residencies in Warwick with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 billed monthly. The lease finished on 6 November 2081. Having 55 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including expenses.