For those whose Werrington flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Werrington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Werrington valuers.
Lewis owned a conversion apartment in Werrington being sold with a lease of just over fifty eight years unexpired. Lewis informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr W Hernández moved into a studio apartment in Werrington in July 2010. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable properties in Werrington with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 billed yearly. The lease expired in 2080. Considering the 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of fees.
Dr Felix Morris acquired a garden flat in Werrington in June 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Werrington with an extended lease were worth £295,000. The average amount of ground rent was £45 billed per annum. The lease finished in 2100. Given that there were 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.