Whitchurch leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Whitchurch residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Whitchurch you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Whitchurch flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Whitchurch can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Whitchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her ground floor flat in Whitchurch, Jordan started the lease extension process as the eighty year mark was quickly approaching. The transaction completed in October 2014. The freeholder’s charges were restricted to approximately 700 pounds.
Last Summer we were phoned by Dr J Wilson , who acquired a one bedroom apartment in Whitchurch in June 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Whitchurch with an extended lease were worth £208,200. The mid-range ground rent payable was £65 collected per annum. The lease concluded in 2086. Given that there were 61 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus professional charges.
Last month we were approach by Mr and Mrs. V Mason , who moved into a first floor apartment in Whitchurch in July 2006. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Whitchurch with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded in 2097. Taking into account 72 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.