Whitnash leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Whitnash will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Whitnash with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Whitnash leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Aarav, came precariously close to the 80-year threshold with the lease on his studio flat in Whitnash. In buying his flat two decades ago, the unexpired term was of no importance. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Aarav extended the lease just under the wire in July. Aarav and the freeholder in the end agreed on an amount of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,025.
Last month we were called by Dr R Richardson , who acquired a garden apartment in Whitnash in April 2001. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar residencies in Whitnash with 100 year plus lease were valued about £265,200. The average ground rent payable was £65 invoiced quarterly. The lease finished in 2091. Given that there were 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of professional charges.
Mrs Isabel Fournier bought a garden apartment in Whitnash in June 2002. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Whitnash with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish on 23 October 2080. Taking into account 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of fees.