When it comes to long leasehold premises in Whalley Range, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Whalley Range with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has under 80 years outstanding, under the current Act the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Whalley Range with more than 100 years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Whalley Range leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Finn, started to get close to the eighty-year mark with the lease on his garden apartment in Whalley Range. In buying his home two decades ago, the length of the lease was of little significance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Finn arranged for a lease extension at the eleventh hour last March. Finn and the freeholder ultimately settled on sum of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £975.
Last Spring we were called by Mr and Mrs. H Scott , who bought a basement apartment in Whalley Range in February 2007. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative residencies in Whalley Range with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 collected annually. The lease ran out on 22 January 2088. Taking into account 62 years outstanding we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.
Mr Tyler Baker owned a one bedroom apartment in Whalley Range in August 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Whalley Range with a long lease were valued about £265,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 28 April 2099. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.