It’s a harsh certainty that a Worcester residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Worcester property prices.Where your lease has approximately ninety years left, you should start considering 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 dips below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Worcester will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Worcester with more than 100 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
Lease extensions in Worcester can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 Worcester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a high value flat in Worcester on the market with a lease of a little over 61 years unexpired. Matthew on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert advice and secured an acceptable deal informally and readily saleable.
Mr and Mrs. Y Allen purchased a studio apartment in Worcester in July 2002. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative residencies in Worcester with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed annually. The lease end date was on 2 February 2079. Considering the 54 years as a residual term we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus costs.
In 2012 we were called by Mr and Mrs. U Bennett who, having was assigned a lease of a one bedroom flat in Worcester in August 2008. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable homes in Worcester with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £45 billed per annum. The lease finished in 2099. Taking into account 74 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.