The re-sale value of a leasehold property in Whimple depends on how long the lease has remaining. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised in advance of the 80 year cut off point. Current legislation enables Whimple qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Whimple with more than one hundred years remaining 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Engaging our service will provide you better control over the value of your Whimple leasehold, as your property will be more valuable and marketable in terms 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.
Adam owned a high value apartment in Whimple being marketed with a lease of just over fifty eight years left. Adam on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last January we were phoned by Dr Kai King , who bought a first floor flat in Whimple in February 2012. The question was if we could approximate the premium could be for a ninety year lease extension. Similar homes in Whimple with a long lease were worth £240,600. The average amount of ground rent was £60 billed monthly. The lease lapsed in 2087. Having 62 years unexpired we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.
Mrs W Edwards purchased a studio flat in Whimple in February 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Whimple with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 9 May 2076. Considering the 51 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.