For those whose Whitchurch flat is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with handle 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.
In recent months Joshua, came critically close to the eighty-year mark with the lease on his ground floor flat in Whitchurch. In buying his home two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Joshua arranged for a lease extension just in the nick of time last September. Joshua and the freeholder via the management company eventually settled on a premium of £6,000 . If he had missed the deadline, the price would have increased by at least £900.
Last Summer we were called by Mr and Mrs. E Moreau , who owned a ground floor apartment in Whitchurch in July 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical flats in Whitchurch with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected per annum. The lease expired on 16 July 2082. Considering the 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
Mr and Mrs. E Wilson bought a studio apartment in Whitchurch in February 2012. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Whitchurch with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease ended in 2093. Having 67 years left we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.