When it comes to residential leasehold premises in Whimple, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Whimple with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has under 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
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. |
Leeds Building Society | 85 years remaining from the start 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 |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Whimple can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience 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.
Two years ago Benjamin, started to get close to the eighty-year threshold with the lease on his studio flat in Whimple. Having bought his flat two decades ago, the lease term was of minimal bearing. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Benjamin was able to extend his lease just in the nick of time last January. Benjamin and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had gone to less than 80 years, the figure would have increased by at least £1,025.
In 2013 we were e-mailed by Ms T Rose who, having completed a studio apartment in Whimple in January 2007. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable homes in Whimple with a long lease were valued about £275,000. The average ground rent payable was £65 collected quarterly. The lease expired in 2093. Considering the 68 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last November we were called by Mrs Sophia Mitchell , who acquired a one bedroom flat in Whimple in May 2001. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparable homes in Whimple with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease expired on 1 February 2082. Taking into account 57 years left we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.