With a long leasehold premises in Whiston, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Whiston with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has less than eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Whiston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Joshua was the the leasehold owner of a conversion flat in Whiston being marketed with a lease of fraction over sixty years remaining. Joshua on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were approached by Mr and Mrs. P Turner who, having was assigned a lease of a recently refurbished flat in Whiston in October 2001. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Similar residencies in Whiston with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 collected annually. The lease lapsed on 18 April 2102. Given that there were 77 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
In 2011 we were contacted by Mr N Richardson who, having was assigned a lease of a one bedroom apartment in Whiston in February 2008. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Whiston with a long lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2082. Taking into account 57 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.