Warwick leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Warwick enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Warwick you really ought to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Warwick can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Warwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Callum, came precariously near to the 80-year threshold with the lease on his ground floor flat in Warwick. Having bought his property 18 years previously, the lease term was of minimal concern. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Callum extended the lease at the eleventh hour last June. Callum and the freeholder in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £925.
Last Winter we were contacted by Mr and Mrs. Y Petit , who moved into a first floor flat in Warwick in October 2010. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Comparable residencies in Warwick with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 invoiced yearly. The lease lapsed in 2078. Given that there were 52 years outstanding we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Mr and Mrs. W Peterson owned a basement apartment in Warwick in April 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Warwick with a long lease were worth £290,000. The average amount of ground rent was £45 collected yearly. The lease ended in 2098. Having 72 years outstanding we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of fees.