With a domestic leasehold property in Worcester Park, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years left. Anyone in Worcester Park with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When a lease has less than 80 years outstanding, under the current legislation the landlord can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Worcester Park with more than one hundred years left 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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Worcester Park leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Nathaniel, came seriously close to the 80-year mark with the lease on his one bedroom apartment in Worcester Park. In buying his property 18 years ago, the unexpired term was of minimal interest. by good luck, he noticed he needed to take action soon on a lease extension. Nathaniel extended the lease at the eleventh hour last January. Nathaniel and the landlord in the end agreed on an amount of £5,000 . If the lease had dropped below eighty years, the amount would have become more costly by at least £975.
Dr Kate Martin bought a newly refurbished flat in Worcester Park in March 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable properties in Worcester Park with a long lease were in the region of £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease expired in 2076. Considering the 51 years outstanding we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.
An example of a Lease Extension matter before the tribunal for a Worcester Park property is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case related to 1 flat. The unexpired term was 60.43 years.