It’s a harsh certainty that a Whitehaven residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Whitehaven property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Whitehaven will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Whitehaven,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitehaven valuers.
Alfie owned a 2 bedroom apartment in Whitehaven being sold with a lease of just over 59 years unexpired. Alfie informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were phoned by Dr O Davis who, having was assigned a lease of a ground floor apartment in Whitehaven in March 1999. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Whitehaven with an extended lease were valued about £208,600. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed in 2083. Taking into account 57 years remaining we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including costs.
In 2010 we were phoned by Mr and Mrs. C Williams who, having bought a studio apartment in Whitehaven in March 2004. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable properties in Whitehaven with an extended lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease elapsed on 6 April 2103. Having 77 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.