Whitstable leases on domestic deteriorating in value. if your lease has approximately 90 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 start incurring an additional element called marriage value. Leasehold owners in Whitstable will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Whitstable,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitstable valuers.
Last year Ryan, started to get near to the eighty-year mark with the lease on his first floor apartment in Whitstable. Having purchased his property two decades ago, the length of the lease was of no interest. Fortunately, he recognised he needed to take action soon on a lease extension. Ryan arranged for a lease extension at the eleventh hour last September. Ryan and the freeholder via the management company in the end settled on the final figure of £5,500 . If the lease had descended below 80 years, the sum would have become more exhorbitant by a minimum £1,125.
In 2012 we were e-mailed by Mr and Mrs. I Taylor who, having owned a ground floor apartment in Whitstable in September 1999. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Similar homes in Whitstable with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected per annum. The lease finished in 2102. Given that there were 77 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Dr T Howard completed a basement apartment in Whitstable in July 1998. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Whitstable with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected per annum. The lease ran out on 15 July 2082. Considering the 57 years left we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.