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. Where you are a leasehold owner in Whitchurch you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Whitchurch with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Lease extensions in Whitchurch can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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.
Freddie owned a conversion flat in Whitchurch being marketed with a lease of a little over 59 years outstanding. Freddie informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mrs Samantha Brown completed a one bedroom apartment in Whitchurch in April 1997. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Whitchurch with a long lease were valued about £256,600. The average ground rent payable was £60 billed quarterly. The lease ended in 2078. Given that there were 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus expenses.
Dr L François moved into a ground floor apartment in Whitchurch in September 2007. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Whitchurch with 100 year plus lease were valued around £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease ended in 2089. Given that there were 63 years unexpired we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus fees.