The market value of Whitefield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Whitefield can be a difficult process. We recommend you obtain professional help from a lawyer 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 in-depth market knowledge dealing with Whitefield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis was the the leasehold owner of a high value apartment in Whitefield on the market with a lease of fraction over 61 years left. Lewis informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Mr Andrew Mitchell , who took over the lease of a basement flat in Whitefield in February 2001. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical flats in Whitefield with an extended lease were worth £166,800. The average amount of ground rent was £50 billed monthly. The lease lapsed on 3 May 2075. Given that there were 50 years outstanding we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of costs.
Mr and Mrs. S Thomas completed a first floor apartment in Whitefield in June 1999. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar residencies in Whitefield with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 2 July 2095. Considering the 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.