The nearer a domestic lease in Whyteleafe nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Whyteleafe will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Whyteleafe leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her leasehold flat in Whyteleafe, Jodie initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The legal work was finalised in August 2007. The landlord’s charges were restricted to under 600 pounds.
Mr A Harris completed a one bedroom flat in Whyteleafe in August 2007. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Whyteleafe with 100 year plus lease were valued about £208,600. The average amount of ground rent was £60 invoiced annually. The lease lapsed in 2083. Taking into account 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
An example of a Freehold Enfranchisement decision for a Whyteleafe residence 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 affected 3 flats. The unexpired residue of the current lease was 75 years.