The market value of a leasehold property in Whimple depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised ahead of the 80 year threshold. Statute enables Whimple qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Whimple can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Whimple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Caleb, started to get close to the eighty-year mark with the lease on his ground floor apartment in Whimple. Having purchased his flat twenty years previously, the length of the lease was of no bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Caleb extended the lease at the eleventh hour in July. Caleb and the freeholder via the management company eventually agreed on sum of £5,000 . If he not met the deadline, the amount would have increased by at least £875.
Dr S Taylor owned a garden flat in Whimple in January 2004. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Whimple with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 billed every twelve months. The lease expiry date was in 2082. Given that there were 56 years unexpired we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
Dr H White bought a garden flat in Whimple in August 2006. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Similar homes in Whimple with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 billed yearly. The lease ended in 2102. Given that there were 76 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.