Whaley Bridge leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Whaley Bridge will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Whaley Bridge with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Whaley Bridge leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her two bedroom apartment in Whaley Bridge, Molly started the lease extension process as the 80 year mark was quickly advancing. The legal work was concluded in August 2012. The landlord’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. R Wright who, having owned a one bedroom flat in Whaley Bridge in June 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Whaley Bridge with an extended lease were valued about £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish on 14 May 2090. Considering the 64 years unexpired we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.
Last Spring we were phoned by Mr and Mrs. W Adams , who completed a one bedroom flat in Whaley Bridge in May 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Whaley Bridge with an extended lease were worth £189,000. The average ground rent payable was £55 billed yearly. The lease ended on 5 June 2079. Having 53 years outstanding we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.