Werrington leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Werrington will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Werrington,the lease extension lawyers 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 Werrington valuers.
Half a year ago Finley, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Werrington. In buying his home two decades ago, the lease term was of no importance. Thankfully, he recognised he needed to take steps soon on a lease extension. Finley was able to extend his lease at the eleventh hour in July. Finley and the landlord ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £1,150.
Last Christmas we were approach by Mrs V Brown , who completed a basement apartment in Werrington in January 2008. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Werrington with an extended lease were worth £225,800. The average amount of ground rent was £60 collected monthly. The lease finished in 2085. Considering the 60 years left we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including expenses.
Dr Courtney Bell purchased a garden flat in Werrington in January 1999. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Identical residencies in Werrington with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2105. Given that there were 80 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.