Whalley residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Whalley with more than one hundred years remaining 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Whalley can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 procuring Whalley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson was the the leasehold owner of a 2 bedroom apartment in Whalley on the market with a lease of fraction over 72 years remaining. Jackson informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Summer we were approach by Mr and Mrs. V Wood , who purchased a first floor flat in Whalley in January 1996. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical homes in Whalley with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 invoiced annually. The lease end date was on 28 August 2089. Having 64 years left we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including legals.
Dr B André bought a first floor apartment in Whalley in June 2003. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable flats in Whalley with an extended lease were valued about £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2100. Having 75 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.