With a residential leasehold premises in Whissendine, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Whissendine with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Whissendine can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 a wealth of experience dealing with Whissendine lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her two bedroom apartment in Whissendine, Megan started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The transaction was concluded in May 2008. The landlord’s costs were restricted to under 450 GBP.
In 2009 we were contacted by Mr and Mrs. S Sánchez who, having took over the lease of a first floor apartment in Whissendine in November 2003. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Whissendine with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed every twelve months. The lease expired on 26 September 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
In 2012 we were phoned by Mr and Mrs. K Nelson who, having acquired a one bedroom apartment in Whissendine in September 1998. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Whissendine with a long lease were worth £280,000. The average amount of ground rent was £45 billed annually. The lease concluded on 23 October 2097. Given that there were 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.