It’s a harsh certainty that a Whissendine residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Whissendine property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most leasehold owners in Whissendine will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Whissendine with in excess of 100 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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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 get guidance from a lawyer and valuer with experience in lease extensions.
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.
After protracted negotiations with the landlord of her leasehold apartment in Whissendine, Rhiannon commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The legal work was finalised in September 2010. The landlord’s costs were restricted to about 550 pounds.
Last Spring we were called by Mrs I Gray , who took over the lease of a ground floor flat in Whissendine in April 1995. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative residencies in Whissendine with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 23 September 2102. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Last Spring we were called by Mr and Mrs. L Brooks , who owned a basement apartment in Whissendine in August 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable residencies in Whissendine with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed in 2091. Having 66 years remaining we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including costs.