When it comes to domestic leasehold property in Westbury Park, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years left. Leasehold owners in Westbury Park with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years left, under the current Act the landlord is entitled to calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Westbury Park with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Last October Eliot, came perilously close to the eighty-year mark with the lease on his ground floor flat in Westbury Park. In buying his property 18 years ago, the unexpired term was of minimal bearing. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Eliot was able to extend his lease at the eleventh hour last June. Eliot and the freeholder via the managing agents in the end settled on an amount of £5,500 . If he not met the deadline, the price would have increased by a minimum £1,100.
Last April we were called by Mr and Mrs. J Simon , who was assigned a lease of a one bedroom apartment in Westbury Park in April 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Westbury Park with a long lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease finished on 5 September 2082. Having 57 years remaining we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Last November we were approach by Mr P Baker , who moved into a one bedroom flat in Westbury Park in January 2000. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparable properties in Westbury Park with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 collected per annum. The lease concluded on 14 April 2102. Given that there were 77 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.