Whitwick leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Whitwick enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Whitwick you would be well advised to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Trailing lengthy negotiations with the landlord of her basement flat in Whitwick, Maisie initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work was concluded in November 2010. The freeholder’s costs were restricted to below 550 GBP.
Last Autumn we were e-mailed by Mr E Hill , who acquired a garden flat in Whitwick in July 2010. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Whitwick with a long lease were worth £264,000. The mid-range ground rent payable was £60 billed monthly. The lease expired on 6 March 2079. Given that there were 53 years remaining we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including expenses.
Last April we were approach by Mr and Mrs. I Clark , who owned a newly refurbished apartment in Whitwick in October 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Whitwick with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced annually. The lease concluded in 2090. Given that there were 64 years left we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.