On the balance of probabilities where you own a flat in Whitchurch you actually own a long leasehold interest over your property
Leasehold premises in Whitchurch with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | 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. |
Using our service gives you better control over the value of your Whitchurch leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Caleb, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Whitchurch. In buying his home 18 years previously, the unexpired term was of no significance. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Caleb arranged for a lease extension at the eleventh hour last September. Caleb and the freeholder in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £1,150.
Last month we were approach by Mr and Mrs. M Wright , who bought a basement apartment in Whitchurch in June 2004. We are asked if we could approximate the price could be for a ninety year lease extension. Similar premises in Whitchurch with an extended lease were worth £225,400. The average ground rent payable was £45 collected monthly. The lease terminated in 2090. Taking into account 64 years remaining we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.
Last Winter we were e-mailed by Mrs B Turner , who was assigned a lease of a ground floor apartment in Whitchurch in September 2005. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in Whitchurch with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2101. Having 75 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.