When it comes to residential leasehold property in Whalley Range, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years left. Leasehold owners in Whalley Range with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Whalley Range with more than 100 years left on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Whalley Range can be a difficult process. We recommend you secure guidance from a lawyer and surveyor 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 in-depth market knowledge 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.
Kyle owned a conversion apartment in Whalley Range being sold with a lease of just over 61 years left. Kyle informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Dr Y Cooper moved into a basement flat in Whalley Range in April 2012. The question was if we could estimate the premium could be to extend the lease by ninety years. Identical residencies in Whalley Range with an extended lease were valued about £242,600. The average ground rent payable was £45 billed quarterly. The lease expiry date was on 19 November 2093. Having 67 years left we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.
Dr M Young moved into a one bedroom flat in Whalley Range in March 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar residencies in Whalley Range with a long lease were worth £280,000. The average ground rent payable was £55 invoiced yearly. The lease concluded on 25 May 2104. Given that there were 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.