Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Whitehaven. Clearly, the term of lease left shortens over time. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Whitehaven have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful deliberation before delaying your Whitehaven lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Whitehaven with more than one hundred years remaining 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Whitehaven,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whitehaven valuers.
Caleb owned a high value flat in Whitehaven on the market with a lease of fraction over sixty years outstanding. Caleb informally approached his landlord a well known local-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 initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2009 we were contacted by Mr G Rose who, having completed a one bedroom apartment in Whitehaven in January 1997. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar homes in Whitehaven with an extended lease were worth £295,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2101. Taking into account 75 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Mrs O Michel acquired a purpose-built flat in Whitehaven in September 1999. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable homes in Whitehaven with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected every twelve months. The lease end date was in 2090. Considering the 64 years remaining we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus legals.