It’s an underpublicised truth that a Whitchurch residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Whitchurch property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property 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 are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Whitchurch,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitchurch valuers.
Twenty four months ago Leo, came seriously close to the eighty-year threshold with the lease on his two bedroom flat in Whitchurch. Having purchased his home 19 years previously, the unexpired term was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Leo extended the lease just under the wire last April. Leo and the landlord subsequently settled on an amount of £6,000 . If he not met the deadline, the price would have escalated by a minimum £975.
Ms Melissa Cook purchased a basement apartment in Whitchurch in July 1996. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable flats in Whitchurch with a long lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended in 2102. Having 77 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Last Christmas we were called by Mr and Mrs. K Bell , who completed a purpose-built flat in Whitchurch in January 2009. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable properties in Whitchurch with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected monthly. The lease ran out on 28 June 2082. Having 57 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.