Main reasons to start your Whaley Bridge lease extension
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Why you should commence your Whaley Bridge lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/whaley-bridge">Whaley Bridge</a> lease depreciates with the years remaining on the lease.
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Whaley Bridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Whaley Bridge enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Whaley Bridge you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Whaley Bridge with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Lenders will not finance a property on a short lease</h4> Banks and building societies are making their criteria more stringent and many now want flats to have at least 60 if not 70 years remaining at the expiry of the mortgage. Considering many flats in Whaley Bridge were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to obtain a mortgage.
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<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Yorkshire Building Society</td>
<td> 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.
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Why use us for your lease extension in Whaley Bridge? </h4>
<p> Regardless of whether you are a tenant or a freeholder in Whaley Bridge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whaley Bridge valuers.
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Whaley Bridge Lease Extension Case Summaries:
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<h5> Nathaniel, Whaley Bridge, Derbyshire</h5>
<p> Last Spring Nathaniel, started to get close to the 80-year threshold with the lease on his one bedroom flat in Whaley Bridge. Having bought his flat two decades ago, the lease term was of minimal interest. Fortunately, he realised he would soon be paying an escalated premium for a lease extension. Nathaniel extended the lease just ahead of time in April. Nathaniel and the freeholder eventually settled on an amount of £5,500 . If the lease had slid below eighty years, the sum would have escalated by a minimum £950.
<h5>Whaley Bridge case:</h5>
<p> Mr James Martin owned a one bedroom flat in Whaley Bridge in November 1999. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Whaley Bridge with 100 year plus lease were in the region of £248,000. The mid-range ground rent payable was £65 collected per annum. The lease concluded in 2089. Given that there were 63 years left we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.
<h5>Whaley Bridge case:</h5>
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Last Christmas we were e-mailed by Dr T Scott , who
completed a first floor apartment in Whaley Bridge in February 2002. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Whaley Bridge with a long lease were in the region of £181,600. The average ground rent payable was £55 invoiced monthly. The lease lapsed in 2078. Taking into account 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.
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