The re-sale value of a leasehold property in Whalley is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised well before the eighty year cut off point. Current legislation enables Whalley qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Whalley with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Whalley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whalley valuers.
Trailing unsuccessful correspondence with the landlord of her basement flat in Whalley, Erin started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was concluded in November 2007. The freeholder’s charges were negotiated to a tad over 550 GBP.
Dr G David was assigned a lease of a purpose-built flat in Whalley in March 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Whalley with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected monthly. The lease lapsed in 2095. Taking into account 69 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last month we were approach by Ms K Jackson , who owned a garden flat in Whalley in September 2012. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparative homes in Whalley with an extended lease were valued about £290,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease terminated on 20 September 2106. Taking into account 80 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.