Unfortunately that a Werrington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Werrington property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of flat owners in Werrington will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Werrington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her garden apartment in Werrington, Ella commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was finalised in May 2006. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were contacted by Mrs E Mercier , who acquired a purpose-built apartment in Werrington in August 1999. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Werrington with an extended lease were worth £174,200. The mid-range ground rent payable was £55 billed per annum. The lease expired on 21 March 2077. Considering the 51 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.
Last Winter we were phoned by Mr and Mrs. W Baker , who purchased a one bedroom flat in Werrington in November 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Werrington with a long lease were worth £285,000. The average amount of ground rent was £45 billed annually. The lease ended in 2097. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.