When it comes to residential leasehold premises in Whissendine, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider 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 greater notably when there are less than 80 years remaining. Anyone in Whissendine with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Whissendine with more than one hundred years outstanding on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Whissendine can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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.
Last October Mason, came dangerously near to the 80-year threshold with the lease on his first floor apartment in Whissendine. Having bought his flat 19 years previously, the length of the lease was of little concern. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Mason arranged for a lease extension just under the wire last April. Mason and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had dipped below 80 years, the figure would have gone up by a minimum £1,050.
Dr Owen Garcia completed a basement apartment in Whissendine in January 2004. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar flats in Whissendine with an extended lease were in the region of £285,000. The average ground rent payable was £45 billed every twelve months. The lease elapsed on 10 January 2098. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were called by Mr and Mrs. I Thomas who, having owned a ground floor flat in Whissendine in February 1995. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Whissendine with a long lease were worth £233,200. The average ground rent payable was £60 collected yearly. The lease expiry date was in 2087. Taking into account 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.