When it comes to domestic leasehold property in Whitnash, you are actually purchasing a right to live in a property for a set period of time. 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 think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Whitnash with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has under eighty years left, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Whitnash leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold proprietor of a conversion apartment in Whitnash on the market with a lease of fraction over fifty eight years unexpired. Aarav on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. E Norbert purchased a studio flat in Whitnash in May 2010. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical homes in Whitnash with a long lease were in the region of £223,400. The average ground rent payable was £60 collected quarterly. The lease ran out in 2084. Given that there were 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including fees.
Last Christmas we were called by Mr Eli Hill , who took over the lease of a recently refurbished flat in Whitnash in April 1998. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Whitnash with a long lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2104. Taking into account 79 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.