Unfortunately that a Whiteley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Whiteley property market.Once your lease gets to 85ish years, 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 below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Whiteley will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax |
The conveyancing solicitors that we work with procure Whiteley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Reuben was the the leasehold proprietor of a conversion flat in Whiteley being sold with a lease of fraction over 59 years outstanding. Reuben informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2011 we were phoned by Mrs H Bonnet who, having moved into a basement flat in Whiteley in March 2006. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Whiteley with 100 year plus lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease expiry date was on 22 September 2080. Given that there were 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including expenses.
Last Autumn we were called by Ms Natasha Morris , who was assigned a lease of a garden flat in Whiteley in March 2001. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Whiteley with an extended lease were valued around £227,800. The average ground rent payable was £45 billed monthly. The lease concluded in 2091. Considering the 65 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.