Werrington leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Leasehold owners in Werrington will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| Yorkshire 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. |
Using our service gives you enhanced 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley owned a high value apartment in Werrington being sold with a lease of just over 72 years remaining. Finley informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Finley to exercise his statutory right. Finley obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Autumn we were contacted by Ms A Nelson , who owned a ground floor flat in Werrington in April 2010. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in Werrington with an extended lease were valued about £257,800. The average ground rent payable was £65 collected monthly. The lease ended in 2090. Taking into account 65 years remaining we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.
In 2010 we were contacted by Mr and Mrs. N Gunderson who, having bought a ground floor apartment in Werrington in February 2011. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Werrington with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 collected monthly. The lease finished on 17 November 2079. Considering the 54 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including costs.