The closer a domestic lease in Whalley Range gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Whalley Range will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Whalley Range with over 100 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Whalley Range can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Whalley Range lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her one bedroom apartment in Whalley Range, Alisha started the lease extension process as the eighty year threshold was swiftly nearing. The transaction was concluded in October 2006. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were approached by Ms L Patel who, having moved into a one bedroom flat in Whalley Range in November 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical premises in Whalley Range with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out in 2094. Given that there were 69 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last year we were called by Dr J Pérez , who was assigned a lease of a purpose-built apartment in Whalley Range in June 2008. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar homes in Whalley Range with 100 year plus lease were valued around £290,000. The average amount of ground rent was £60 collected yearly. The lease ended in 2105. Considering the 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.