Unfortunately that a Washington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Washington property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. Most flat owners in Washington will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| Virgin |
Using our service gives you increased control over the value of your Washington leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Benjamin, came precariously close to the eighty-year mark with the lease on his first floor flat in Washington. Having bought his home two decades ago, the unexpired term was of little bearing. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. Benjamin extended the lease at the eleventh hour last August. Benjamin and the freeholder via the managing agents subsequently agreed on a premium of £5,500 . If the lease had descended to less than 80 years, the sum would have escalated by at least £850.
Mr and Mrs. F Moreau moved into a studio flat in Washington in November 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Washington with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2104. Taking into account 78 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Last year we were called by Mr and Mrs. J Martinez , who completed a purpose-built apartment in Washington in November 2009. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable residencies in Washington with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced quarterly. The lease termination date was on 1 January 2093. Considering the 67 years remaining we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of legals.