When it comes to domestic leasehold property in Whitehaven, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years remaining. Leasehold owners in Whitehaven with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When a lease has less than 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Whitehaven,the lease extension experts 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.
Subsequent to protracted negotiations with the freeholder of her one bedroom flat in Whitehaven, Phoebe started the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in July 2012. The freeholder’s charges were negotiated to approximately six hundred GBP.
Last month we were phoned by Dr L James , who owned a ground floor apartment in Whitehaven in May 2004. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical properties in Whitehaven with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease expiry date was on 5 February 2103. Taking into account 77 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
In 2012 we were e-mailed by Mr Ethan López who, having was assigned a lease of a one bedroom apartment in Whitehaven in November 2012. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar flats in Whitehaven with a long lease were worth £260,200. The average amount of ground rent was £65 invoiced monthly. The lease terminated on 21 October 2092. Taking into account 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus legals.