Whitchurch residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Whitchurch with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Whitchurch can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Whitchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Max, started to get close to the eighty-year threshold with the lease on his first floor flat in Whitchurch. Having purchased his property two decades ago, the unexpired term was of little relevance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Max arranged for a lease extension just ahead of time last September. Max and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have become more costly by a minimum £1,100.
Last Winter we were approach by Mr and Mrs. B Thompson , who purchased a ground floor apartment in Whitchurch in September 2011. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Whitchurch with 100 year plus lease were worth £245,000. The average amount of ground rent was £50 billed per annum. The lease terminated in 2094. Considering the 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Mr Stanley Nguyen completed a recently refurbished flat in Whitchurch in August 2010. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Whitchurch with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded in 2105. Taking into account 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.