The value of Whitehaven 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 escalate significantly once the remaining term is less than 80 years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Whitehaven can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Whitehaven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Theo, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Whitehaven. In buying his flat 19 years ago, the unexpired term was of minimal bearing. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Theo arranged for a lease extension at the eleventh hour in August. Theo and the freeholder via the management company subsequently agreed on a premium of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £1,000.
Mrs Bethany Phillips acquired a purpose-built flat in Whitehaven in February 2008. The question was if we could estimate the price would be to prolong the lease by ninety years. Similar premises in Whitehaven with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2098. Considering the 73 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2013 we were phoned by Dr V Bell who, having moved into a garden flat in Whitehaven in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative homes in Whitehaven with 100 year plus lease were worth £235,600. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed in 2087. Taking into account 62 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.