Whyteleafe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Whyteleafe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Whyteleafe you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Whyteleafe leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Whyteleafe with over one hundred years remaining on the lease are sometimes 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you enhanced control over the value of your Whyteleafe leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a conversion apartment in Whyteleafe on the market with a lease of a few days over 61 years remaining. Thomas informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Ms Kelsey Hall purchased a first floor apartment in Whyteleafe in September 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical properties in Whyteleafe with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed on 22 May 2096. Considering the 71 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Whyteleafe premises 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 related to 3 flats. The number of years remaining on the existing lease(s) was 75 years.