The re-sale value of a leasehold property in Whaley Bridge depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised well before the eighty year cut off point. Current legislation entitles Whaley Bridge qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Whaley Bridge with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Whaley Bridge, Louise initiated the lease extension process as the eighty year deadline was rapidly coming. The transaction was finalised in October 2007. The freeholder’s costs were negotiated to under 700 GBP.
In 2011 we were approached by Dr Elijah Petit who, having moved into a purpose-built apartment in Whaley Bridge in February 1996. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Whaley Bridge with a long lease were in the region of £174,200. The average ground rent payable was £55 collected yearly. The lease finished on 23 June 2076. Considering the 51 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
Last Spring we were phoned by Mr and Mrs. V Watson , who purchased a recently refurbished apartment in Whaley Bridge in November 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Whaley Bridge with an extended lease were worth £285,000. The average ground rent payable was £45 invoiced quarterly. The lease ran out in 2096. Considering the 71 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.