As the length of the unexpired term of a Worcester domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Worcester will qualify for this right; however a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Worcester with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Worcester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Ben, started to get close to the 80-year mark with the lease on his one bedroom apartment in Worcester. In buying his flat two decades ago, the length of the lease was of minimal relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Ben extended the lease just under the wire in March. Ben and the landlord ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the price would have become more costly by a minimum £1,050.
Mr David Brooks completed a ground floor flat in Worcester in November 2005. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Worcester with a long lease were worth £233,200. The mid-range ground rent payable was £60 billed annually. The lease ended on 3 February 2086. Considering the 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus costs.
Mr and Mrs. T González acquired a first floor apartment in Worcester in October 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Worcester with a long lease were valued about £166,800. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded on 25 October 2075. Given that there were 50 years outstanding we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus professional charges.