On the balance of probabilities if you own a flat in Whyteleafe you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Whyteleafe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors 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 landlord of her garden apartment in Whyteleafe, Sarah initiated the lease extension process as the eighty year threshold was swiftly nearing. The transaction was finalised in November 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. R Mercier was assigned a lease of a studio flat in Whyteleafe in October 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Whyteleafe with an extended lease were in the region of £171,800. The average ground rent payable was £55 billed per annum. The lease terminated on 15 January 2076. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.
An example of a Freehold Enfranchisement case 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 unexpired term as at the valuation date was 75 years.