The closer a residential lease in Whitehaven nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Whitehaven will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Whitehaven with more than one hundred years remaining on the lease are sometimes referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancing solicitors that we work with procure Whitehaven 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 conveyancing solicitor we work with provide it.
Half a year ago Harry, started to get close to the eighty-year mark with the lease on his ground floor flat in Whitehaven. Having purchased his home twenty years previously, the unexpired term was of no concern. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Harry extended the lease just ahead of time last August. Harry and the freeholder subsequently agreed on sum of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £875.
In 2010 we were phoned by Dr Amber Kelly who, having moved into a garden apartment in Whitehaven in October 1997. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Whitehaven with a long lease were in the region of £166,800. The average ground rent payable was £50 invoiced monthly. The lease ended on 20 March 2074. Having 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of legals.
In 2012 we were contacted by Mrs K Adams who, having owned a purpose-built apartment in Whitehaven in August 2012. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar premises in Whitehaven with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 12 June 2094. Taking into account 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.