With a residential leasehold premises in Whimple, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Whimple with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has under 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Whimple with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Whimple,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whimple valuers.
Off the back of protracted correspondence with the landlord of her one bedroom apartment in Whimple, Anna commenced the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was finalised in March 2006. The freeholder’s charges were negotiated to about 600 GBP.
Dr N Gunderson moved into a newly refurbished apartment in Whimple in February 1997. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative homes in Whimple with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 billed every twelve months. The lease elapsed in 2078. Taking into account 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of legals.
In 2009 we were approached by Mr Riley Allen who, having moved into a garden apartment in Whimple in February 2000. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative flats in Whimple with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 billed yearly. The lease terminated in 2098. Given that there were 72 years outstanding we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.