Whalley Range leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Whalley Range will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Whalley Range with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset 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. |
The conveyancing solicitors that we work with handle Whalley Range 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 conveyancing solicitor we work with provide it.
Last October Logan, started to get near to the eighty-year threshold with the lease on his garden apartment in Whalley Range. Having purchased his flat two decades ago, the lease term was of minimal interest. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Logan extended the lease just in the nick of time last April. Logan and the freeholder in the end settled on sum of £5,500 . If the lease had slipped lower than eighty years, the amount would have become more exhorbitant by a minimum £1,100.
In 2011 we were approached by Dr A Patel who, having acquired a one bedroom apartment in Whalley Range in January 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative flats in Whalley Range with a long lease were in the region of £260,000. The average ground rent payable was £50 billed every twelve months. The lease ended in 2098. Taking into account 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2009 we were approached by Dr R Patel who, having owned a first floor apartment in Whalley Range in October 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Whalley Range with an extended lease were valued about £261,600. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed in 2078. Given that there were 52 years outstanding we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including expenses.