Whiteley residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Whiteley with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 are not acceptable. 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. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Whiteley can be a difficult process. We recommend you get guidance 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 a wealth of experience procuring Whiteley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her garden flat in Whiteley, Rhiannon started the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension completed in May 2012. The freeholder’s fees were restricted to about 450 GBP.
Last year we were called by Mr and Mrs. I Dupont , who completed a recently refurbished apartment in Whiteley in September 2005. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar properties in Whiteley with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 collected yearly. The lease expired in 2104. Considering the 78 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last year we were approach by Dr Oscar King , who took over the lease of a basement flat in Whiteley in October 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Whiteley with a long lease were in the region of £191,000. The mid-range ground rent payable was £65 collected annually. The lease concluded on 6 January 2084. Taking into account 58 years left we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.