When it comes to domestic leasehold premises in Wheathampstead, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Anyone in Wheathampstead with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has under 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Wheathampstead leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her basement apartment in Wheathampstead, Phoebe commenced the lease extension process as the eighty year mark was rapidly nearing. The lease extension was concluded in February 2014. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Ms P Taylor who, having acquired a basement apartment in Wheathampstead in April 1997. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparable properties in Wheathampstead with a long lease were valued about £210,000. The average amount of ground rent was £50 billed monthly. The lease lapsed in 2105. Taking into account 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Ms Ashleigh François took over the lease of a purpose-built apartment in Wheathampstead in July 2010. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative flats in Wheathampstead with an extended lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2094. Considering the 69 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.