On the balance of probabilities where you own a flat in Whyteleafe you actually own a long leasehold interest over your property
Leasehold properties in Whyteleafe with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Whyteleafe can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Whyteleafe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Callum, came very near to the 80-year threshold with the lease on his garden flat in Whyteleafe. Having purchased his home 18 years ago, the length of the lease was of little interest. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Callum arranged for a lease extension just in the nick of time in April. Callum and the freeholder in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £1,075.
Last Summer we were e-mailed by Mrs M Stewart , who acquired a first floor flat in Whyteleafe in February 2004. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar flats in Whyteleafe with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 invoiced per annum. The lease ended in 2081. Given that there were 55 years outstanding we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including fees.
An example of a Freehold Enfranchisement case for a Whyteleafe property is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case was in relation to 3 flats. The remaining number of years on the lease was 75 years.