Whitehaven leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Whitehaven will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Whitehaven can be a difficult process. We recommend you procure professional help from a conveyancer 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 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.
Trailing unsuccessful correspondence with the freeholder of her purpose-built flat in Whitehaven, Danielle initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension completed in February 2012. The freeholder’s costs were kept to an absolute minimum.
Dr Kelsey Pérez was assigned a lease of a studio flat in Whitehaven in April 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Whitehaven with a long lease were worth £198,800. The mid-range ground rent payable was £55 collected monthly. The lease terminated on 4 November 2080. Taking into account 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
In 2009 we were called by Dr Max Khan who, having owned a purpose-built flat in Whitehaven in September 2009. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Identical properties in Whitehaven with 100 year plus lease were valued around £295,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed in 2100. Taking into account 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.