As the length of the unexpired term of a Whitchurch domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Whitchurch will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining 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 wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the freeholder of her purpose-built apartment in Whitchurch, Ella initiated the lease extension process as the eighty year deadline was quickly advancing. The lease extension completed in September 2014. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were approach by Mr and Mrs. D Gray , who was assigned a lease of a garden flat in Whitchurch in November 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Whitchurch with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease finished on 13 November 2103. Taking into account 78 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Last Autumn we were approach by Dr B Rose , who completed a studio flat in Whitchurch in August 1998. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable homes in Whitchurch with an extended lease were worth £191,000. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2083. Taking into account 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.