Chances are that if you own a flat in Whittlesey you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Whittlesey 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 conveyancing solicitor we work with provide it.
Teddy was the the leasehold proprietor of a 2 bedroom flat in Whittlesey on the market with a lease of fraction over fifty eight years outstanding. Teddy on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Dr Edward Lefebvre owned a ground floor apartment in Whittlesey in June 1997. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Whittlesey with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was on 2 June 2104. Considering the 79 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
Last month we were e-mailed by Dr S Williams , who was assigned a lease of a newly refurbished apartment in Whittlesey in April 1999. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative flats in Whittlesey with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease terminated in 2093. Taking into account 68 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.