The value of Whaley Bridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Whaley Bridge can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience procuring 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.
Half a year ago Riley, started to get close to the eighty-year mark with the lease on his basement flat in Whaley Bridge. Having bought his flat 19 years previously, the lease term was of minimal interest. Luckily, he realised he needed to take steps soon on Extending the lease. Riley arranged for a lease extension at the eleventh hour last April. Riley and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he had missed the deadline, the figure would have gone up by at least £1,000.
Last February we were e-mailed by Mr and Mrs. F Morel , who owned a ground floor apartment in Whaley Bridge in November 1998. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical premises in Whaley Bridge with a long lease were valued about £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 15 February 2078. Taking into account 52 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including legals.
In 2012 we were called by Dr R Davis who, having acquired a one bedroom apartment in Whaley Bridge in October 2010. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable premises in Whaley Bridge with a long lease were valued around £290,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded in 2098. Having 72 years remaining we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.