It’s an underpublicised certainty that a Whitehaven residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Whitehaven property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls 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 Most leasehold owners in Whitehaven will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Whitehaven with over 100 years unexpired 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancers that we work with undertake 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 lawyer we work with provide it.
Benjamin owned a conversion flat in Whitehaven on the market with a lease of a little over fifty eight years left. Benjamin on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Winter we were e-mailed by Ms Natalie Harris , who purchased a ground floor flat in Whitehaven in July 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Whitehaven with a long lease were valued about £181,600. The mid-range ground rent payable was £55 billed monthly. The lease ran out on 22 November 2078. Having 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.
Mr and Mrs. V Robinson was assigned a lease of a one bedroom flat in Whitehaven in February 2010. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Whitehaven with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 25 May 2098. Having 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.