When it comes to residential leasehold property in Whimple, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Whimple with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years left, under the relevant legislation the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 Whimple 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.
In 2014 Harvey, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Whimple. In buying his home 18 years previously, the unexpired term was of no interest. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Harvey extended the lease at the eleventh hour last March. Harvey and the freeholder via the management company ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £1,050.
Mr and Mrs. B Davies took over the lease of a newly refurbished flat in Whimple in November 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Whimple with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected monthly. The lease finished in 2089. Having 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
Mr and Mrs. O Díaz was assigned a lease of a basement flat in Whimple in May 1995. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Whimple with a long lease were in the region of £189,000. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2078. Taking into account 53 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.