Whitchurch leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Whitchurch will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Using our service gives you better control over the value of your Whitchurch leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Luke, came dangerously near to the 80-year threshold with the lease on his ground floor apartment in Whitchurch. Having purchased his property two decades ago, the unexpired term was of little significance. Luckily, he recognised he would soon be paying way over the odds for Extending the lease. Luke extended the lease just in the nick of time in January. Luke and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had slid lower than eighty years, the figure would have escalated by at least £1,075.
Dr Sam Lambert bought a basement flat in Whitchurch in June 1996. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Whitchurch with an extended lease were valued around £242,600. The average ground rent payable was £45 collected quarterly. The lease expired on 10 March 2093. Having 67 years left we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.
In 2011 we were contacted by Mr L Mitchell who, having moved into a studio apartment in Whitchurch in March 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Whitchurch with an extended lease were worth £280,000. The average amount of ground rent was £55 invoiced yearly. The lease expired in 2104. Given that there were 78 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.