The nearer a residential lease in Whissendine gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Whissendine will qualify for this right; that being said a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Whissendine with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Whissendine can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 in-depth market knowledge procuring Whissendine 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 Nathaniel, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Whissendine. Having bought his flat two decades ago, the lease term was of little bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Nathaniel arranged for a lease extension just ahead of time last May. Nathaniel and the landlord in the end agreed on a premium of £5,000 . If he had missed the deadline, the figure would have increased by at least £1,050.
Dr Kyle Ali moved into a ground floor flat in Whissendine in October 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Whissendine with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2089. Considering the 64 years left we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including professional charges.
In 2014 we were called by Mr and Mrs. F Morgan who, having was assigned a lease of a first floor flat in Whissendine in October 2006. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical properties in Whissendine with a long lease were worth £191,400. The average ground rent payable was £55 billed annually. The lease ran out on 7 April 2079. Given that there were 54 years left we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.