When it comes to residential leasehold property in Whitwick, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Anyone in Whitwick with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the current Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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 Whitwick can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 Whitwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ibrahim was the the leasehold owner of a conversion apartment in Whitwick on the market with a lease of a little over sixty years left. Ibrahim on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Dr Kayleigh Peterson purchased a ground floor apartment in Whitwick in February 2011. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Whitwick with an extended lease were valued about £265,000. The average ground rent payable was £55 collected yearly. The lease elapsed on 15 January 2099. Considering the 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Dr S Mason acquired a ground floor flat in Whitwick in March 2009. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical premises in Whitwick with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease expiry date was on 23 January 2079. Taking into account 54 years left we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.