With a domestic leasehold property in Worplesdon, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Worplesdon with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has less than 80 years outstanding, under the relevant statute the landlord can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Worplesdon can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Worplesdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her first floor apartment in Worplesdon, Robyn commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work completed in November 2014. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. W Morris , who purchased a first floor apartment in Worplesdon in March 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Worplesdon with a long lease were valued around £265,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease end date was on 14 February 2099. Considering the 74 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last Spring we were called by Mr and Mrs. G Brooks , who bought a purpose-built apartment in Worplesdon in October 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar premises in Worplesdon with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected per annum. The lease terminated on 23 November 2079. Taking into account 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.