On the balance of probabilities if you own a flat in Whitmore you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Whitmore leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a high value flat in Whitmore on the market with a lease of a few days over 72 years remaining. Tommy informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Dr E Sánchez owned a first floor apartment in Whitmore in August 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar flats in Whitmore with an extended lease were valued about £246,800. The average amount of ground rent was £60 billed per annum. The lease concluded in 2076. Given that there were 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 not including expenses.
Mr and Mrs. F Mitchell purchased a studio flat in Whitmore in September 2006. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Whitmore with 100 year plus lease were valued about £203,200. The average ground rent payable was £65 invoiced yearly. The lease concluded in 2087. Taking into account 61 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.