There is no doubt about it a leasehold property in Westbury Park is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Westbury Park will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 lawyer we work with provide it.
After protracted negotiations with the freeholder of her ground floor apartment in Westbury Park, Jodie started the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work was finalised in March 2008. The freeholder’s fees were restricted to about 700 GBP.
In 2011 we were contacted by Mr and Mrs. K Torres who, having owned a purpose-built flat in Westbury Park in April 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Westbury Park with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2097. Given that there were 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
Mr and Mrs. L Miller took over the lease of a one bedroom flat in Westbury Park in June 2011. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical properties in Westbury Park with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease ended on 5 April 2086. Given that there were 60 years unexpired we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including expenses.