As the the remaining lease term of a Whaley Bridge residential lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Whaley Bridge will meet the qualifying criteria; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than 100 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 residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Whaley Bridge can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Whaley Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the landlord of her first floor apartment in Whaley Bridge, Kate initiated the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work was finalised in September 2010. The landlord’s charges were negotiated to about 650 GBP.
In 2014 we were called by Ms Kayleigh Scott who, having took over the lease of a newly refurbished apartment in Whaley Bridge in November 2010. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Whaley Bridge with a long lease were worth £295,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish on 26 August 2099. Having 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Last April we were approach by Dr H Mercier , who took over the lease of a first floor flat in Whaley Bridge in August 2011. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar homes in Whaley Bridge with an extended lease were worth £248,000. The average amount of ground rent was £65 billed annually. The lease came to a finish on 6 November 2088. Taking into account 63 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.