There is no doubt about it a leasehold property in Whitstable is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Whitstable will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Whitstable leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her purpose-built apartment in Whitstable, Abbie started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction was concluded in September 2007. The landlord’s costs were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. N Fournier who, having bought a newly refurbished apartment in Whitstable in August 2008. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar homes in Whitstable with a long lease were worth £191,000. The mid-range ground rent payable was £65 collected yearly. The lease termination date was on 13 October 2083. Having 58 years remaining we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 not including costs.
Last Christmas we were approach by Dr A Jones , who acquired a one bedroom apartment in Whitstable in January 1996. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar residencies in Whitstable with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out in 2094. Considering the 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.