There is no doubt about it a leasehold property in Warfield is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Warfield will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise 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.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | 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. |
Engaging our service gives you better control over the value of your Warfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Dylan owned a conversion flat in Warfield being marketed with a lease of a few days over fifty eight years outstanding. Dylan informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and secured satisfactory resolution informally and sell the property.
Last Christmas we were e-mailed by Dr P Jones , who completed a newly refurbished apartment in Warfield in October 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable flats in Warfield with a long lease were in the region of £265,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2098. Taking into account 73 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Christmas we were contacted by Mr B Ricardo , who was assigned a lease of a ground floor apartment in Warfield in August 2002. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Warfield with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease finished in 2078. Taking into account 53 years outstanding we approximated the premium to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of fees.