The value of Whissendine leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is below than eighty years
Leasehold properties in Whissendine with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 |
| 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. |
Retaining our service will provide you increased control over the value of your Whissendine leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Leon, started to get near to the 80-year threshold with the lease on his first floor flat in Whissendine. Having bought his property two decades ago, the lease term was of minimal importance. by good luck, he noticed he needed to take steps soon on a lease extension. Leon arranged for a lease extension just in the nick of time last April. Leon and the freeholder subsequently settled on sum of £6,000 . If the lease had dipped lower than 80 years, the sum would have escalated by a minimum £850.
Last Summer we were e-mailed by Ms V Mitchell , who took over the lease of a first floor apartment in Whissendine in January 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Whissendine with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease terminated on 15 May 2096. Having 70 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last Christmas we were e-mailed by Mr and Mrs. P Green , who purchased a purpose-built apartment in Whissendine in September 2000. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable premises in Whissendine with an extended lease were worth £218,400. The average ground rent payable was £60 invoiced every twelve months. The lease concluded in 2085. Considering the 59 years remaining we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of expenses.