The market value of a leasehold property in Werrington depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year threshold. Leasehold Reform legislation entitles Werrington qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Werrington with over one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Werrington,the lease extension lawyers 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.
In recent months Kyle, started to get near to the 80-year threshold with the lease on his purpose- built flat in Werrington. In buying his flat 19 years ago, the unexpired term was of no interest. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Kyle was able to extend his lease just under the wire in July. Kyle and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he not met the deadline, the figure would have escalated by at least £875.
In 2011 we were contacted by Mr and Mrs. E Green who, having moved into a ground floor apartment in Werrington in September 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Werrington with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease termination date was in 2078. Considering the 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.
Mrs Rosie Allen was assigned a lease of a garden apartment in Werrington in July 2009. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Werrington with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 collected annually. The lease termination date was on 27 June 2098. Given that there were 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.