Whitchurch leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Whitchurch tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Whitchurch you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Whitchurch leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Riley owned a studio flat in Whitchurch on the market with a lease of a little over 72 years left. Riley on an informal basis spoke with his landlord a well known London-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 new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to invoke his statutory right. Riley obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2011 we were called by Mr and Mrs. G Davies who, having owned a one bedroom apartment in Whitchurch in January 2001. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative homes in Whitchurch with an extended lease were worth £265,000. The average amount of ground rent was £55 billed monthly. The lease ran out in 2098. Given that there were 74 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last month we were called by Mr and Mrs. N Smith , who purchased a recently refurbished apartment in Whitchurch in September 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Whitchurch with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease termination date was on 20 April 2078. Considering the 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.