The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Whitwick can extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Whitwick lease extension. Putting off that expense now simply increases the premium you will eventually be required to pay to extend the lease.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| 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. |
| 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 professional help from a lawyer 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 a wealth of experience 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.
Subsequent to lengthy correspondence with the landlord of her purpose-built apartment in Whitwick, Chantelle commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was concluded in November 2012. The landlord’s fees were kept to an absolute minimum.
In 2012 we were approached by Mrs Chloe Thompson who, having bought a garden flat in Whitwick in May 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Whitwick with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 billed monthly. The lease end date was in 2091. Taking into account 65 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
Ms Poppy Brooks acquired a purpose-built apartment in Whitwick in January 2010. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative flats in Whitwick with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed per annum. The lease terminated on 3 September 2102. Given that there were 76 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.