Whitefield leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Whitefield will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Whitefield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold owner of a high value apartment in Whitefield being marketed with a lease of a few days over 61 years left. Harvey informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were called by Ms Niamh Bell , who bought a basement apartment in Whitefield in April 1999. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Whitefield with a long lease were valued around £235,600. The average amount of ground rent was £60 collected quarterly. The lease termination date was in 2087. Having 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
In 2013 we were called by Mr and Mrs. D White who, having bought a ground floor flat in Whitefield in August 1997. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Whitefield with a long lease were valued about £174,200. The average amount of ground rent was £55 billed quarterly. The lease came to a finish in 2076. Considering the 51 years left we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.