There is no doubt about it a leasehold property in Whaley Bridge is a wasting asset as a result of the shortening lease. Where the lease has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Whaley Bridge will qualify for this right; that being said a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Mason was the the leasehold owner of a high value flat in Whaley Bridge on the market with a lease of a few days over 61 years outstanding. Mason on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Dr O Gunderson owned a basement apartment in Whaley Bridge in June 2011. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Whaley Bridge with an extended lease were in the region of £275,000. The average ground rent payable was £65 billed annually. The lease ended on 3 April 2094. Taking into account 68 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
Mr H Miller bought a basement apartment in Whaley Bridge in November 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Whaley Bridge with an extended lease were worth £213,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease ran out on 8 March 2083. Given that there were 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.