For those whose Worcester property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Worcester leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her one bedroom apartment in Worcester, Chantelle initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work was finalised in August 2009. The landlord’s fees were restricted to slightly above 450 pounds.
In 2014 we were approached by Ms C Allen who, having bought a one bedroom apartment in Worcester in October 2009. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar homes in Worcester with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease ran out in 2092. Having 66 years outstanding we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.
Last Spring we were contacted by Mr and Mrs. P Baker , who owned a purpose-built flat in Worcester in January 2006. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar residencies in Worcester with a long lease were valued about £198,800. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed in 2081. Having 55 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including expenses.