Whimple leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Whimple enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Whimple you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Whimple with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Whimple,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whimple valuers.
Two years ago Nathan, came critically near to the 80-year threshold with the lease on his garden apartment in Whimple. Having purchased his home two decades ago, the unexpired term was of little importance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Nathan extended the lease just ahead of time in January. Nathan and the landlord ultimately settled on a premium of £6,000 . If he had missed the deadline, the premium would have become more costly by a minimum £1,125.
Dr J Young completed a studio flat in Whimple in June 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable premises in Whimple with an extended lease were worth £243,000. The average amount of ground rent was £65 invoiced annually. The lease expired in 2089. Having 63 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.
Last Winter we were approach by Mr and Mrs. F André , who was assigned a lease of a one bedroom flat in Whimple in April 2010. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable homes in Whimple with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2078. Having 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.