When it comes to long leasehold property in Whitehaven, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Whitehaven with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has below 80 years remaining, under the current legislation the landlord can calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Whitehaven with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
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 conveyancer we work with provide it.
In the wake of 9 months of unsuccessful discussions with the landlord of her one bedroom apartment in Whitehaven, Alice commenced the lease extension process as the eighty year threshold was fast advancing. The lease extension was concluded in September 2006. The landlord’s fees were restricted to below 500 GBP.
Ms Chantelle Wood took over the lease of a purpose-built flat in Whitehaven in May 2008. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable homes in Whitehaven with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 billed yearly. The lease expired in 2098. Considering the 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Ms Georgia Brooks took over the lease of a first floor apartment in Whitehaven in July 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical properties in Whitehaven with 100 year plus lease were valued around £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 25 July 2087. Having 61 years unexpired we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus expenses.