Werrington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Werrington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Werrington you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax |
The conveyancing solicitors that we work with procure Werrington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Sebastian, started to get near to the 80-year mark with the lease on his ground floor flat in Werrington. In buying his flat two decades ago, the lease term was of little interest. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Sebastian arranged for a lease extension at the eleventh hour in September. Sebastian and the landlord subsequently settled on sum of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £900.
In 2011 we were contacted by Dr T Wood who, having completed a basement flat in Werrington in February 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Werrington with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed monthly. The lease concluded in 2089. Given that there were 63 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.
In 2010 we were approached by Mr and Mrs. R Nguyen who, having acquired a recently refurbished apartment in Werrington in October 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable premises in Werrington with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2078. Taking into account 52 years remaining we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.