When it comes to residential leasehold property in Whitchurch, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about 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 increases markedly especially once there are fewer than 80 years left. Anyone in Whitchurch with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has fewer than 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Whitchurch,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitchurch valuers.
Off the back of protracted correspondence with the freeholder of her leasehold flat in Whitchurch, Jade initiated the lease extension process as the eighty year deadline was rapidly advancing. The lease extension was concluded in August 2007. The landlord’s costs were kept to an absolute minimum.
Dr W Jackson took over the lease of a garden flat in Whitchurch in April 1996. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Whitchurch with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease ran out on 27 February 2087. Having 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.
In 2013 we were approached by Mr and Mrs. U Carter who, having owned a one bedroom flat in Whitchurch in January 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Whitchurch with an extended lease were valued about £265,000. The average amount of ground rent was £50 billed annually. The lease finished in 2098. Taking into account 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.