The market value of a leasehold property in Werrington is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised ahead of the eighty year mark. Current legislation entitles Werrington qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Werrington with over 100 years remaining on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Werrington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Werrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Callum, came very near to the eighty-year threshold with the lease on his garden flat in Werrington. Having bought his property two decades ago, the length of the lease was of little relevance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Callum was able to extend his lease just under the wire in January. Callum and the freeholder eventually settled on an amount of £5,000 . If the lease had dropped lower than eighty years, the sum would have gone up by at least £900.
Last Winter we were phoned by Mr D Davis , who owned a garden apartment in Werrington in February 1996. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Werrington with a long lease were worth £184,000. The mid-range ground rent payable was £55 collected yearly. The lease terminated in 2078. Taking into account 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Ms S Williams was assigned a lease of a garden flat in Werrington in July 1995. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Werrington with a long lease were worth £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated in 2098. Taking into account 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.