The nearer a residential lease in Whickham nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 100 years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Whickham will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Whickham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her leasehold apartment in Whickham, Emma commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work completed in February 2012. The freeholder’s charges were negotiated to below 600 pounds.
In 2011 we were phoned by Dr Archie Scott who, having moved into a first floor apartment in Whickham in November 2001. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar premises in Whickham with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 23 June 2101. Having 75 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
In 2014 we were e-mailed by Mr and Mrs. M Adams who, having took over the lease of a garden flat in Whickham in March 2000. The question was if we could approximate the premium could be to extend the lease by 90 years. Similar properties in Whickham with a long lease were worth £250,400. The average amount of ground rent was £65 billed per annum. The lease expiry date was in 2090. Considering the 64 years remaining we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of fees.