On the balance of probabilities if you own a flat in Whitehaven you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with handle 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.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her purpose-built apartment in Whitehaven, Charlotte started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The transaction completed in January 2015. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. K Collins owned a first floor flat in Whitehaven in May 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical properties in Whitehaven with a long lease were in the region of £218,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 15 April 2084. Considering the 59 years left we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus expenses.
Last Autumn we were approach by Mr Benjamin Nguyen , who completed a one bedroom apartment in Whitehaven in September 1996. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable premises in Whitehaven with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed monthly. The lease end date was on 22 August 2104. Having 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.