The market value of Whalley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than eighty years
Leasehold residencies in Whalley with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Whalley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whalley valuers.
In 2014 Aiden, came perilously near to the eighty-year mark with the lease on his studio apartment in Whalley. In buying his flat twenty years ago, the lease term was of minimal significance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Aiden extended the lease just under the wire last September. Aiden and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the figure would have become more costly by a minimum £950.
In 2009 we were contacted by Dr Rachael Hernández who, having owned a studio apartment in Whalley in July 2009. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable flats in Whalley with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease termination date was on 9 January 2101. Considering the 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last Spring we were e-mailed by Mr and Mrs. A Harris , who moved into a one bedroom flat in Whalley in May 2001. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar properties in Whalley with an extended lease were worth £176,200. The average ground rent payable was £65 billed quarterly. The lease terminated in 2081. Considering the 56 years unexpired we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 not including expenses.