As the the remaining lease term of a Whaley Bridge residential lease decreases so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Whaley Bridge will qualify for this right; that being said a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Whaley Bridge with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors that we work with handle Whaley Bridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Jude, started to get near to the 80-year mark with the lease on his purpose- built flat in Whaley Bridge. Having bought his flat 19 years previously, the lease term was of minimal concern. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Jude arranged for a lease extension just under the wire in May. Jude and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £1,050.
Dr E François completed a first floor apartment in Whaley Bridge in March 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Whaley Bridge with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected yearly. The lease ran out in 2099. Having 73 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2011 we were e-mailed by Mr David Baker who, having completed a one bedroom apartment in Whaley Bridge in April 2007. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative homes in Whaley Bridge with 100 year plus lease were in the region of £240,600. The mid-range amount of ground rent was £65 billed per annum. The lease terminated on 3 October 2088. Considering the 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.