The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Whitstable can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Whitstable lease extension. Putting off that expense now simply increases the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge 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 protracted negotiations with the landlord of her studio apartment in Whitstable, Gemma initiated the lease extension process as the eighty year deadline was quickly approaching. The legal work was concluded in January 2005. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mr O Petit who, having moved into a recently refurbished apartment in Whitstable in August 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Whitstable with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2079. Having 53 years remaining we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of expenses.
Last month we were called by Dr C Phillips , who bought a one bedroom apartment in Whitstable in November 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Whitstable with a long lease were in the region of £225,400. The average amount of ground rent was £45 billed monthly. The lease finished in 2090. Taking into account 64 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus legals.