With a residential leasehold property in Werrington, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years remaining. Leasehold owners in Werrington with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has under 80 years left, under the relevant legislation the landlord can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Werrington with over 100 years remaining 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Werrington can be a difficult process. We recommend you procure 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 procuring Werrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas owned a 2 bedroom flat in Werrington being sold with a lease of a little over sixty years unexpired. Lucas on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last month we were called by Mrs Isabel Scott , who owned a studio flat in Werrington in July 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Werrington with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 22 July 2085. Taking into account 59 years left we estimated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of expenses.
In 2013 we were called by Mr and Mrs. T Evans who, having owned a one bedroom apartment in Werrington in March 1995. We are asked if we could estimate the premium could be to extend the lease by ninety years. Similar residencies in Werrington with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished in 2105. Considering the 79 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.