There is no doubt about it a leasehold flat or house in Whittlesey is a wasting asset as a result of the shortening lease. If the lease has, over 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Whittlesey will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Whittlesey with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake 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.
Jonathan was the the leasehold proprietor of a conversion apartment in Whittlesey on the market with a lease of a little over 61 years unexpired. Jonathan on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Summer we were phoned by Mr and Mrs. R Bernard , who moved into a one bedroom apartment in Whittlesey in March 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Whittlesey with an extended lease were in the region of £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease ran out in 2083. Having 57 years outstanding we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.
Last Christmas we were e-mailed by Mr and Mrs. O Rodríguez , who took over the lease of a studio flat in Whittlesey in April 1998. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Whittlesey with a long lease were in the region of £200,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 7 January 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.