It’s an underpublicised certainty that a Whittlesey residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Whittlesey property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most leasehold owners in Whittlesey will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Whittlesey with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle 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 owned a high value apartment in Whittlesey on the market with a lease of a little over fifty eight years remaining. Teddy on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last June we were phoned by Dr Caleb Gray , who owned a garden apartment in Whittlesey in March 2006. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable residencies in Whittlesey with an extended lease were in the region of £198,800. The average ground rent payable was £55 collected per annum. The lease elapsed in 2080. Having 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including fees.
Mr and Mrs. Y Rodríguez owned a one bedroom apartment in Whittlesey in May 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Whittlesey with an extended lease were valued around £295,000. The mid-range ground rent payable was £50 billed annually. The lease terminated in 2100. Taking into account 75 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.