Whitefield leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Whitefield will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Whitefield with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Whitefield,the lease extension solicitors 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 Whitefield valuers.
Trailing lengthy discussions with the freeholder of her two bedroom apartment in Whitefield, Lucy started the lease extension process as the 80 year mark was quickly approaching. The transaction completed in March 2011. The landlord’s charges were negotiated to slightly above six hundred pounds.
In 2011 we were e-mailed by Mr and Mrs. T Robinson who, having purchased a one bedroom apartment in Whitefield in May 1995. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable homes in Whitefield with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 3 June 2099. Considering the 74 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Ms Katie Williams moved into a basement apartment in Whitefield in November 1995. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Whitefield with a long lease were valued about £243,000. The average amount of ground rent was £65 billed annually. The lease terminated on 16 June 2088. Given that there were 63 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.