Unfortunately that a Whitmore residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Whitmore property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% 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 additional value that a lease extension will add the property The majority of flat owners in Whitmore will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 procure guidance from a conveyancer and surveyor 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.
Subsequent to unsuccessful negotiations with the landlord of her leasehold apartment in Whitmore, Bethany commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was finalised in March 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. Y Rogers acquired a first floor flat in Whitmore in January 2006. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in Whitmore with a long lease were worth £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed on 6 August 2082. Having 57 years left we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
Last Spring we were approach by Ms Paige García , who moved into a one bedroom apartment in Whitmore in March 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative residencies in Whitmore with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 collected yearly. The lease terminated on 7 June 2093. Having 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.