Whitwick Lease Extension - Free Consultation

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Main reasons to start your Whitwick lease extension


Top reasons for lease extension now:

A Whitwick leasehold property depreciates with the years remaining on the lease.

The only way is down when it comes to Whitwick lease terms. Whitwick flats that have a residual term shorter than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.

An extended lease has roughly the same value as a freehold

Leasehold properties in Whitwick with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not finance a property with a short lease

Lenders do not like short residential leases. You are likely to encounter problems where you wish to sell your flat in Whitwick if the unexpired lease term is below the criteria set by the majority of lenders. Different mortgage companies have varying criteria but on the whole theyrequire a minimum remaining lease term of 65 years.

Lender Requirement
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.
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.
Halifax Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.

Get in touch with one of our Whitwick lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Whitwick,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitwick valuers.

Whitwick Lease Extension Example Cases:

Sophia, Whitwick, Leicestershire,

Off the back of unsuccessful negotiations with the landlord of her first floor apartment in Whitwick, Sophia commenced the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in September 2015. The freeholder’s charges were kept to an absolute minimum.

Whitwick case:

In 2013 we were phoned by Mr and Mrs. A Davis who, having moved into a ground floor apartment in Whitwick in January 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Whitwick with a long lease were in the region of £210,600. The average ground rent payable was £45 invoiced annually. The lease expiry date was on 4 June 2087. Having 62 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.

Whitwick case:

Last July we were approach by Mr and Mrs. C Nelson , who bought a ground floor flat in Whitwick in September 2011. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative residencies in Whitwick with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired in 2098. Considering the 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.