Whickham residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Whickham with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in Whickham can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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 a wealth of experience 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.
Last year Arthur, came critically close to the 80-year mark with the lease on his ground floor flat in Whickham. Having bought his home twenty years previously, the length of the lease was of minimal relevance. Luckily, he became aware that he needed to take steps soon on a lease extension. Arthur extended the lease just under the wire in January. Arthur and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,125.
Last August we were e-mailed by Mrs Elizabeth Rivera , who moved into a one bedroom apartment in Whickham in May 2004. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar properties in Whickham with an extended lease were worth £257,800. The average amount of ground rent was £65 billed per annum. The lease ended on 23 April 2091. Given that there were 65 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
Dr T Clarke completed a garden apartment in Whickham in November 1995. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Whickham with an extended lease were valued around £191,400. The average amount of ground rent was £55 billed quarterly. The lease came to a finish in 2080. Given that there were 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus legals.