Unfortunately that a Werrington residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Werrington property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Werrington will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Werrington with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Werrington can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Werrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October George, came very near to the eighty-year mark with the lease on his ground floor apartment in Werrington. In buying his property two decades ago, the unexpired term was of minimal bearing. Fortunately, he realised he needed to take action soon on Extending the lease. George was able to extend his lease at the eleventh hour in May. George and the landlord subsequently settled on sum of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £875.
In 2012 we were called by Ms I Rivera who, having bought a first floor apartment in Werrington in September 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Werrington with a long lease were valued around £240,600. The average ground rent payable was £60 collected yearly. The lease expired in 2088. Having 62 years outstanding we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus fees.
Ms Mollie Roberts moved into a studio apartment in Werrington in September 2012. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Werrington with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed on 5 October 2077. Considering the 51 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.