When it comes to domestic leasehold premises in Whickham, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Leasehold owners in Whickham with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years remaining, under the current statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Whickham can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Whickham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot was the the leasehold proprietor of a studio apartment in Whickham on the market with a lease of a few days over 59 years unexpired. Eliot informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2009 we were approached by Dr M Anderson who, having owned a first floor apartment in Whickham in July 2002. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Whickham with a long lease were worth £280,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2096. Having 70 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mr and Mrs. P Peterson bought a purpose-built apartment in Whickham in July 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable properties in Whickham with an extended lease were worth £223,400. The average ground rent payable was £60 collected quarterly. The lease came to a finish on 18 August 2085. Having 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.