The closer a residential lease in Whimple nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Whimple will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited 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 generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
| 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 lawyers that we work with undertake Whimple 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.
Alex was the the leasehold owner of a conversion flat in Whimple on the market with a lease of a few days over 61 years outstanding. Alex informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were called by Mr Henry Brown who, having moved into a one bedroom flat in Whimple in July 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Whimple with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 collected annually. The lease ran out on 15 November 2086. Taking into account 60 years unexpired we approximated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 plus legals.
Last Christmas we were e-mailed by Mr and Mrs. O Young , who completed a basement flat in Whimple in July 2011. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Whimple with an extended lease were worth £210,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2106. Considering the 80 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.