There is no doubt about it a leasehold flat or house in Whitehaven is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Whitehaven will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 will provide you enhanced control over the value of your Whitehaven leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Leon owned a studio flat in Whitehaven on the market with a lease of fraction over 72 years unexpired. Leon informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. 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 £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. N Lefebvre who, having purchased a garden flat in Whitehaven in May 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Whitehaven with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 9 January 2105. Given that there were 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
In 2011 we were contacted by Mr and Mrs. N Hall who, having owned a first floor flat in Whitehaven in October 2008. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Whitehaven with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ended on 12 October 2094. Taking into account 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.