Unfortunately that a Whitefield residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Whitefield property market.Where your lease has approximately 90 years left, you should start thinking about 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 falls lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Whitefield will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Whitefield with over one hundred years left 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 purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Santander | |
| Virgin |
Lease extensions in Whitefield can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 Whitefield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a 2 bedroom flat in Whitefield being sold with a lease of a little over sixty years unexpired. Jake on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last Summer we were phoned by Mr and Mrs. B Phillips , who purchased a recently refurbished flat in Whitefield in April 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative homes in Whitefield with an extended lease were worth £184,000. The average ground rent payable was £55 collected monthly. The lease concluded in 2079. Taking into account 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.
Dr Rebecca Carter purchased a one bedroom flat in Whitefield in October 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Whitefield with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 2 October 2099. Considering the 73 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.