The only way is down when it comes to Whickham lease terms. Whickham properties that have a residual term shorter than 80 years will de-escalate in market price even faster, and the cost to extend your lease will increase.
Leasehold residencies in Whickham with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Whickham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whickham valuers.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her first floor apartment in Whickham, Mia commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work completed in May 2007. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were called by Ms H Nguyen who, having took over the lease of a garden flat in Whickham in November 1996. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar homes in Whickham with an extended lease were valued about £189,000. The average ground rent payable was £55 billed per annum. The lease concluded on 14 May 2078. Taking into account 53 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
Last Winter we were contacted by Dr R Watson , who purchased a ground floor apartment in Whickham in May 1997. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Identical flats in Whickham with a long lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease termination date was in 2098. Having 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.