When it comes to long leasehold premises in Whitmore, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years remaining. Leasehold owners in Whitmore with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has below 80 years left, under the current legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Whitmore with over one hundred years remaining on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Whitmore can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Whitmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Isaac, started to get close to the 80-year mark with the lease on his leasehold apartment in Whitmore. Having purchased his flat two decades ago, the length of the lease was of little importance. Thankfully, he recognised he needed to take action soon on a lease extension. Isaac was able to extend his lease just under the wire last September. Isaac and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have become more costly by at least £900.
Last September we were e-mailed by Mr M Patel , who acquired a recently refurbished apartment in Whitmore in July 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Whitmore with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced yearly. The lease finished on 19 October 2097. Taking into account 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2010 we were approached by Mr and Mrs. F Simon who, having completed a basement flat in Whitmore in January 2003. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative residencies in Whitmore with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease termination date was on 19 January 2077. Having 51 years outstanding we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including legals.