Worcester Park leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Worcester Park will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Worcester Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Worcester Park valuers.
Subsequent to lengthy correspondence with the landlord of her first floor apartment in Worcester Park, Rachel initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension completed in March 2012. The landlord’s charges were restricted to a tad over 600 GBP.
In 2014 we were called by Mr Sebastian Roberts who, having moved into a purpose-built apartment in Worcester Park in July 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Worcester Park with 100 year plus lease were valued about £189,000. The average ground rent payable was £55 collected monthly. The lease finished in 2078. Considering the 53 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
An example of a Lease Extension matter before the tribunal for a Worcester Park residence is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case related to 1 flat. The number of years remaining on the existing lease(s) was 60.43 years.