The closer a residential lease in Worplesdon gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining 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 consider extending without delay. Many flat owners in Worplesdon will qualify for this right; however a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Worplesdon with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancing solicitors that we work with undertake Worplesdon 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.
Alexander was the the leasehold proprietor of a conversion flat in Worplesdon being marketed with a lease of fraction over sixty years unexpired. Alexander on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2012 we were contacted by Mr and Mrs. V Brooks who, having was assigned a lease of a basement apartment in Worplesdon in June 2008. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical residencies in Worplesdon with an extended lease were worth £168,800. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed in 2081. Having 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.
Ms T King purchased a basement flat in Worplesdon in September 2011. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar homes in Worplesdon with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 invoiced per annum. The lease termination date was in 2092. Given that there were 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.