Whitstable leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Whitstable tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Whitstable you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Whitstable with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Whitstable can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience dealing with Whitstable lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the landlord of her garden flat in Whitstable, Leah commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was concluded in April 2010. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. S Brown who, having owned a studio apartment in Whitstable in February 2008. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Whitstable with a long lease were valued around £227,800. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended on 3 January 2091. Having 65 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
In 2009 we were e-mailed by Mr Aarav André who, having took over the lease of a garden flat in Whitstable in November 2000. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable homes in Whitstable with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 invoiced yearly. The lease terminated on 23 March 2102. Considering the 76 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.