There is no doubt about it a leasehold property in Whittlesey is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Whittlesey will qualify for this right; nevertheless a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Whittlesey with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Whittlesey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whittlesey valuers.
Ibrahim was the the leasehold owner of a 2 bedroom apartment in Whittlesey being marketed with a lease of fraction over sixty years left. Ibrahim informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. G Wright who, having was assigned a lease of a studio flat in Whittlesey in August 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Whittlesey with a long lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease expiry date was in 2098. Given that there were 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
In 2010 we were called by Dr O Watson who, having took over the lease of a basement apartment in Whittlesey in May 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative premises in Whittlesey with a long lease were in the region of £233,200. The average ground rent payable was £60 collected quarterly. The lease finished in 2087. Having 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus expenses.