With a long leasehold premises in Whitmore, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years left. Anyone in Whitmore with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once a lease has under eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 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 | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Whitmore leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Edward, started to get near to the eighty-year mark with the lease on his first floor apartment in Whitmore. Having bought his home 19 years ago, the unexpired term was of little interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Edward was able to extend his lease just under the wire in May. Edward and the landlord in the end agreed on a premium of £5,000 . If the lease had gone lower than 80 years, the premium would have become more exhorbitant by a minimum £975.
Mr J Mercier bought a one bedroom flat in Whitmore in November 2004. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable properties in Whitmore with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 billed yearly. The lease terminated on 9 November 2089. Considering the 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 plus fees.
Mr and Mrs. M Ward owned a newly refurbished apartment in Whitmore in April 1999. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Whitmore with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed annually. The lease concluded on 21 August 2100. Given that there were 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.