Whiteley leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Whiteley will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Whiteley with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Irrespective of whether you are a tenant or a landlord in Whiteley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whiteley valuers.
Last Christmas Sam, started to get near to the 80-year mark with the lease on his garden flat in Whiteley. Having purchased his home 19 years previously, the lease term was of minimal relevance. Thankfully, he recognised he needed to take steps soon on a lease extension. Sam was able to extend his lease at the eleventh hour last July. Sam and the landlord eventually settled on sum of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £1,025.
Last February we were phoned by Dr Harriet Bell , who moved into a garden flat in Whiteley in January 2002. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative properties in Whiteley with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed on 17 June 2105. Taking into account 80 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Mrs Mollie García was assigned a lease of a one bedroom apartment in Whiteley in July 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Whiteley with a long lease were valued about £200,800. The average ground rent payable was £65 invoiced per annum. The lease lapsed on 17 September 2085. Taking into account 60 years unexpired we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.