It’s a harsh truth that a Whitchurch residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Whitchurch property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Whitchurch will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Whitchurch leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her first floor apartment in Whitchurch, Melissa commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension completed in January 2010. The landlord’s fees were restricted to below 550 GBP.
Dr Eli Ramírez purchased a studio apartment in Whitchurch in July 2007. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical flats in Whitchurch with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 billed annually. The lease lapsed in 2105. Given that there were 79 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.
In 2013 we were contacted by Dr N Nguyen who, having completed a garden flat in Whitchurch in January 2002. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative properties in Whitchurch with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 billed annually. The lease concluded on 4 June 2085. Having 59 years outstanding we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.