The market value of a leasehold property in Werrington depends on how long the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation entitles Werrington qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Werrington with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Werrington can be a difficult process. We recommend you procure professional help from a lawyer 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 Werrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian owned a 2 bedroom apartment in Werrington on the market with a lease of just over 61 years unexpired. Kian informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Last October we were e-mailed by Mr and Mrs. W Bernard , who completed a first floor apartment in Werrington in April 2002. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Werrington with an extended lease were in the region of £233,200. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2086. Considering the 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.
In 2013 we were called by Ms B Bernard who, having acquired a purpose-built flat in Werrington in July 2005. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Werrington with a long lease were valued about £166,800. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish on 25 November 2075. Taking into account 50 years remaining we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of expenses.