The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Whitefield can extend the lease for an additional ninety years in accordance with statute. Please give careful consideration before delaying your Whitefield lease extension. Shelving the costs today simply escalates the premium you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with undertake Whitefield 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 conveyancer we work with provide it.
Muhammad was the the leasehold owner of a studio flat in Whitefield being sold with a lease of a few days over fifty eight years outstanding. Muhammad informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. O Anderson moved into a first floor apartment in Whitefield in September 2008. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative residencies in Whitefield with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 invoiced per annum. The lease terminated in 2077. Considering the 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
Last January we were approach by Mr Freddie Bernard , who purchased a recently refurbished apartment in Whitefield in November 2002. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Whitefield with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed per annum. The lease finished on 24 April 2097. Taking into account 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.