The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Whaley Bridge may extend the lease for a further 90 years under legislation. Please give careful consideration before delaying your Whaley Bridge lease extension. Shelving that expense now simply increases the premium you will ultimately be required to pay to extend the lease.
Leasehold premises in Whaley Bridge with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Whaley Bridge can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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.
Off the back of lengthy correspondence with the freeholder of her two bedroom flat in Whaley Bridge, Alexandra started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work was concluded in July 2007. The landlord’s costs were negotiated to about 500 pounds.
Last month we were called by Dr Hunter Gunderson , who acquired a studio apartment in Whaley Bridge in November 1997. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Whaley Bridge with an extended lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2101. Given that there were 75 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Ms Charlotte Gómez owned a purpose-built apartment in Whaley Bridge in November 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Whaley Bridge with a long lease were valued about £250,400. The average amount of ground rent was £65 invoiced monthly. The lease expiry date was in 2090. Given that there were 64 years outstanding we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including expenses.