Whiteley leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Whiteley will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Whiteley with over 100 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake 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.
Dexter owned a studio flat in Whiteley being sold with a lease of a little over 61 years outstanding. Dexter informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mrs Madeleine Nelson acquired a purpose-built flat in Whiteley in May 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Whiteley with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 25 October 2089. Taking into account 64 years left we calculated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of legals.
In 2009 we were contacted by Dr E Rose who, having took over the lease of a basement flat in Whiteley in January 2007. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable residencies in Whiteley with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed in 2100. Given that there were 75 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.