Whitland residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold residencies in Whitland with more than one hundred years unexpired 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
The lawyers that we work with procure Whitland 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.
Subsequent to lengthy correspondence with the freeholder of her purpose-built flat in Whitland, Courtney commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was finalised in February 2008. The landlord’s charges were negotiated to below 500 GBP.
In 2011 we were phoned by Mr Isaac Anderson who, having was assigned a lease of a first floor apartment in Whitland in January 2008. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Whitland with an extended lease were in the region of £233,200. The average amount of ground rent was £60 billed annually. The lease finished in 2087. Having 61 years left we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including costs.
Mrs Laura Cooper took over the lease of a newly refurbished flat in Whitland in January 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Whitland with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 collected monthly. The lease came to a finish on 19 May 2076. Having 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.