The nearer a domestic lease in Whalley gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Whalley will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with procure Whalley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Hugo was the the leasehold proprietor of a 2 bedroom flat in Whalley being marketed with a lease of a few days over fifty eight years unexpired. Hugo informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and secured satisfactory resolution informally and readily saleable.
Mr Dylan Garcia took over the lease of a garden apartment in Whalley in February 2011. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable residencies in Whalley with an extended lease were valued around £173,800. The average ground rent payable was £60 invoiced quarterly. The lease expiry date was on 14 October 2081. Given that there were 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Last Winter we were phoned by Ms R Smith , who completed a ground floor apartment in Whalley in May 2004. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Whalley with a long lease were in the region of £235,200. The average ground rent payable was £45 collected quarterly. The lease concluded in 2092. Having 66 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.