Whiteley residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a freeholder in Whiteley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whiteley valuers.
Samuel owned a high value apartment in Whiteley being marketed with a lease of a few days over 61 years left. Samuel informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr S Roberts was assigned a lease of a garden apartment in Whiteley in March 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Whiteley with an extended lease were worth £265,000. The average amount of ground rent was £55 billed per annum. The lease expired in 2100. Having 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Last Winter we were e-mailed by Mr and Mrs. B Bernard , who completed a basement flat in Whiteley in September 2010. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar properties in Whiteley with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed per annum. The lease expired in 2080. Considering the 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.