With a long leasehold property in Werrington, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Leasehold owners in Werrington with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Werrington with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| 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. |
Using our service will provide you enhanced control over the value of your Werrington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad was the the leasehold proprietor of a high value apartment in Werrington being sold with a lease of a little over 72 years unexpired. Muhammad informally approached his landlord 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 a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2009 we were contacted by Mr Ethan Ramírez who, having purchased a one bedroom apartment in Werrington in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Werrington with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 11 July 2103. Considering the 77 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Christmas we were e-mailed by Mr and Mrs. H Morris , who owned a basement flat in Werrington in September 2009. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Werrington with a long lease were valued about £260,200. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2092. Given that there were 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 plus legals.