As the length of the unexpired term of a Whittlesey residential lease decreases so does its value and therefore the value of your property. If the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Whittlesey will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Whittlesey with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Whittlesey leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her one bedroom flat in Whittlesey, Rosie commenced the lease extension process as the 80 year mark was swiftly nearing. The legal work was concluded in May 2012. The freeholder’s charges were kept to an absolute minimum.
Dr Harrison Leroy owned a one bedroom flat in Whittlesey in November 2003. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable homes in Whittlesey with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 invoiced quarterly. The lease terminated in 2083. Taking into account 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.
Mr Caleb Sánchez bought a basement apartment in Whittlesey in June 2002. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Whittlesey with a long lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded in 2103. Having 78 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.