When it comes to domestic leasehold premises in Werrington, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Werrington with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has fewer than 80 years left, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Werrington leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Daniel, came dangerously close to the eighty-year threshold with the lease on his studio flat in Werrington. In buying his flat 18 years previously, the length of the lease was of little bearing. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Daniel extended the lease just ahead of time in April. Daniel and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he not met the deadline, the price would have escalated by a minimum £1,150.
Mr Zachary Petit owned a one bedroom apartment in Werrington in May 2008. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative residencies in Werrington with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish in 2101. Considering the 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Ms E Nelson took over the lease of a one bedroom flat in Werrington in September 2002. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Werrington with an extended lease were worth £257,800. The average ground rent payable was £65 invoiced monthly. The lease finished on 10 August 2090. Taking into account 65 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus fees.