Werrington leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Werrington will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Werrington with over 100 years unexpired 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Engaging our service gives you better control over the value of your Werrington leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her two bedroom apartment in Werrington, Kelsey initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension completed in May 2011. The landlord’s costs were kept to an absolute minimum.
In 2014 we were contacted by Dr Isabel Phillips who, having took over the lease of a purpose-built flat in Werrington in February 2006. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Similar flats in Werrington with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected yearly. The lease finished on 27 April 2082. Taking into account 58 years unexpired we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
In 2010 we were phoned by Mrs M Baker who, having took over the lease of a basement apartment in Werrington in July 2004. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar residencies in Werrington with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease concluded in 2102. Having 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.