Westbury Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Westbury Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Westbury Park you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Westbury Park with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Westbury Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Westbury Park valuers.
Last year Kai, came perilously close to the eighty-year threshold with the lease on his studio flat in Westbury Park. In buying his flat two decades ago, the length of the lease was of little significance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Kai was able to extend his lease just ahead of time last June. Kai and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had dropped lower than eighty years, the premium would have gone up by a minimum £1,000.
Last Spring we were called by Mr and Mrs. M Bernard , who purchased a first floor flat in Westbury Park in July 1995. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Westbury Park with a long lease were worth £189,000. The average amount of ground rent was £55 collected monthly. The lease ran out in 2079. Considering the 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
In 2012 we were contacted by Mr Charlie Ramírez who, having acquired a purpose-built flat in Westbury Park in May 1998. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Westbury Park with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease end date was in 2099. Taking into account 73 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.