Whaley Bridge leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Whaley Bridge will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Whaley Bridge with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Whaley Bridge,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whaley Bridge valuers.
Subsequent to unsuccessful negotiations with the freeholder of her leasehold apartment in Whaley Bridge, Lauren commenced the lease extension process as the 80 year mark was fast nearing. The transaction was finalised in January 2008. The freeholder’s fees were kept to an absolute minimum.
Dr T Collins bought a purpose-built flat in Whaley Bridge in October 1999. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar homes in Whaley Bridge with a long lease were worth £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 11 March 2082. Given that there were 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Last March we were called by Dr Isobel Watson , who took over the lease of a garden apartment in Whaley Bridge in April 2001. The question was if we could estimate the price would be to extend the lease by ninety years. Similar premises in Whaley Bridge with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed per annum. The lease came to a finish in 2102. Taking into account 77 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.