With a domestic leasehold premises in Whaley Bridge, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Residents in Whaley Bridge with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant legislation the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Whaley Bridge with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you better 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 decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Harrison, came perilously near to the eighty-year threshold with the lease on his two bedroom apartment in Whaley Bridge. Having bought his flat two decades ago, the lease term was of no bearing. Luckily, he noticed he needed to take action soon on Extending the lease. Harrison arranged for a lease extension at the eleventh hour last April. Harrison and the landlord in the end settled on sum of £6,000 . If the lease had slid lower than 80 years, the sum would have increased by a minimum £1,075.
Last Christmas we were contacted by Ms Sophia Davies , who acquired a basement flat in Whaley Bridge in November 2007. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative flats in Whaley Bridge with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease elapsed on 13 June 2095. Given that there were 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2014 we were e-mailed by Mr and Mrs. H Sánchez who, having owned a studio flat in Whaley Bridge in June 2006. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative homes in Whaley Bridge with a long lease were in the region of £223,400. The average ground rent payable was £60 billed annually. The lease lapsed on 5 October 2084. Considering the 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including legals.