The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Whickham can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Whickham lease extension. Putting off that expense now simply escalates the price you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Whickham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of lengthy correspondence with the freeholder of her one bedroom apartment in Whickham, Kayleigh commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction completed in March 2013. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were called by Mr I Patel who, having purchased a ground floor flat in Whickham in October 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Whickham with a long lease were valued about £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish on 26 September 2103. Having 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Ms O Stewart moved into a ground floor flat in Whickham in September 2011. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Whickham with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed yearly. The lease terminated on 11 July 2092. Considering the 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including professional charges.