Withernsea leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Withernsea will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Withernsea,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Withernsea valuers.
Subsequent to lengthy negotiations with the landlord of her leasehold flat in Withernsea, Freya initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in February 2011. The freeholder’s fees were kept to an absolute minimum.
Dr Finn André was assigned a lease of a one bedroom flat in Withernsea in January 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar premises in Withernsea with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished on 3 June 2088. Considering the 63 years remaining we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.
Last Autumn we were contacted by Mr Connor Ricardo , who acquired a studio apartment in Withernsea in November 2012. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable properties in Withernsea with an extended lease were worth £265,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2099. Taking into account 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.