Whimple leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Whimple will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Whimple with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Whimple leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.
After unsuccessful correspondence with the landlord of her first floor flat in Whimple, Chloe initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was concluded in May 2013. The landlord’s fees were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. N Baker who, having was assigned a lease of a newly refurbished apartment in Whimple in February 1998. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative residencies in Whimple with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 11 August 2105. Taking into account 79 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2014 we were phoned by Dr Abigail Pérez who, having took over the lease of a ground floor apartment in Whimple in February 1995. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Whimple with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out on 12 September 2094. Considering the 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.