On the balance of probabilities if you own a flat in Whitstable you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Whitstable lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing lengthy negotiations with the landlord of her leasehold apartment in Whitstable, Melissa commenced the lease extension process as the 80 year deadline was swiftly nearing. The transaction was concluded in July 2009. The freeholder’s costs were negotiated to about 550 pounds.
Ms Abigail Bonnet owned a ground floor flat in Whitstable in August 2000. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative properties in Whitstable with a long lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended on 6 October 2098. Considering the 72 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Winter we were contacted by Dr James Bernard , who moved into a garden flat in Whitstable in July 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Whitstable with 100 year plus lease were valued around £261,600. The average ground rent payable was £60 collected annually. The lease lapsed on 10 September 2078. Given that there were 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of costs.