Whitwick residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Retaining our service gives you better control over the value of your Whitwick leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her ground floor apartment in Whitwick, Jennifer started the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was finalised in June 2015. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were contacted by Dr S Ali , who purchased a one bedroom apartment in Whitwick in August 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Whitwick with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated on 7 August 2103. Considering the 77 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last Spring we were contacted by Mrs Isobel Gunderson , who was assigned a lease of a first floor apartment in Whitwick in January 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Whitwick with an extended lease were valued about £183,600. The average ground rent payable was £65 billed annually. The lease ended on 7 March 2083. Having 57 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.