Unfortunately that a Whitchurch residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Whitchurch property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Whitchurch will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Whitchurch with in excess of 100 years outstanding on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with undertake Whitchurch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following protracted correspondence with the landlord of her leasehold apartment in Whitchurch, Courtney started the lease extension process as the 80 year threshold was quickly approaching. The lease extension was concluded in May 2013. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. L Phillips who, having purchased a one bedroom apartment in Whitchurch in June 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in Whitchurch with a long lease were valued about £193,400. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2085. Given that there were 59 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus expenses.
Last Spring we were called by Mr and Mrs. K King , who bought a one bedroom flat in Whitchurch in September 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Whitchurch with a long lease were worth £255,000. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2096. Having 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.