The closer a residential lease in Whitchurch nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Whitchurch will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Whitchurch with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Whitchurch can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Aaron owned a high value flat in Whitchurch being sold with a lease of a little over 72 years left. Aaron informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. H Hill owned a one bedroom flat in Whitchurch in June 2003. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable premises in Whitchurch with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 collected annually. The lease ran out on 8 November 2077. Having 51 years remaining we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.
In 2014 we were called by Dr N Norbert who, having purchased a studio apartment in Whitchurch in October 2000. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative premises in Whitchurch with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 collected every twelve months. The lease ran out in 2088. Having 62 years left we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus legals.