Westbury On Trym leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Westbury On Trym tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Westbury On Trym you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Westbury On Trym 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 lawyer we work with provide it.
Toby owned a conversion flat in Westbury On Trym being marketed with a lease of a little over 61 years remaining. Toby informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were approach by Mr and Mrs. M Richardson , who purchased a one bedroom flat in Westbury On Trym in September 2001. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Westbury On Trym with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease finished in 2093. Taking into account 68 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2014 we were phoned by Mr and Mrs. E Martin who, having purchased a newly refurbished apartment in Westbury On Trym in November 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Westbury On Trym with 100 year plus lease were in the region of £213,600. The average amount of ground rent was £60 billed per annum. The lease expiry date was in 2082. Considering the 57 years left we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.