Unfortunately that a Whalley Range residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Whalley Range property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Whalley Range will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Whalley Range leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her garden apartment in Whalley Range, Emily commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was concluded in January 2013. The freeholder’s fees were kept to an absolute minimum.
Dr G Ramírez completed a purpose-built apartment in Whalley Range in July 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparative premises in Whalley Range with a long lease were worth £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed in 2105. Having 79 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Last month we were e-mailed by Mr and Mrs. U Girard , who completed a one bedroom apartment in Whalley Range in August 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Whalley Range with an extended lease were worth £193,400. The average amount of ground rent was £65 billed quarterly. The lease lapsed on 16 March 2085. Having 59 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus professional charges.