Westbury Park 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 Park tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Westbury Park you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Westbury Park leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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 |
The conveyancing solicitors that we work with procure Westbury Park 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 conveyancer we work with provide it.
Daniel was the the leasehold owner of a conversion apartment in Westbury Park being marketed with a lease of a little over 72 years unexpired. Daniel on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking 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. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Last Summer we were contacted by Dr Shannon Davies , who moved into a one bedroom apartment in Westbury Park in August 2004. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Westbury Park with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease terminated in 2087. Taking into account 61 years left we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.
Last Summer we were called by Dr O Patel , who was assigned a lease of a recently refurbished flat in Westbury Park in August 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Westbury Park with 100 year plus lease were in the region of £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease termination date was on 24 April 2076. Having 50 years unexpired we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of fees.