With a long leasehold property in Whaley Bridge, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Residents in Whaley Bridge with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than eighty years left, under the current statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Whaley Bridge 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.
Alexander owned a 2 bedroom flat in Whaley Bridge being sold with a lease of a little over sixty years outstanding. Alexander on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mr and Mrs. M Clark moved into a recently refurbished apartment in Whaley Bridge in April 1999. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Whaley Bridge with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 collected per annum. The lease termination date was in 2085. Considering the 59 years unexpired we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of expenses.
In 2014 we were e-mailed by Mr Theo Torres who, having acquired a one bedroom apartment in Whaley Bridge in October 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Whaley Bridge with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed yearly. The lease ended on 3 February 2105. Considering the 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.