The value of Whimple leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold properties in Whimple with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Kai owned a high value flat in Whimple on the market with a lease of fraction over 61 years left. Kai informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2013 we were approached by Mr and Mrs. H Parker who, having purchased a studio apartment in Whimple in February 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Whimple with a long lease were in the region of £250,400. The average amount of ground rent was £65 billed per annum. The lease ended in 2090. Considering the 64 years left we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.
In 2010 we were e-mailed by Mr and Mrs. I Davies who, having took over the lease of a basement apartment in Whimple in May 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Whimple with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 collected quarterly. The lease ran out on 20 November 2079. Taking into account 53 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.