Whitnash leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Whitnash will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Whitnash with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a freeholder in Whitnash,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whitnash valuers.
Subsequent to lengthy negotiations with the landlord of her one bedroom flat in Whitnash, Jasmine initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work completed in November 2011. The landlord’s fees were negotiated to a tad over 450 GBP.
In 2009 we were called by Mr and Mrs. L Phillips who, having moved into a one bedroom apartment in Whitnash in April 2004. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Whitnash with a long lease were worth £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2090. Considering the 64 years unexpired we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus expenses.
In 2014 we were approached by Ms Jessica Nelson who, having bought a ground floor flat in Whitnash in November 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Whitnash with a long lease were worth £189,000. The average amount of ground rent was £55 billed monthly. The lease ran out on 19 June 2079. Considering the 53 years left we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.