The market value of a leasehold property in Westhoughton is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded well before the 80 year threshold. Leasehold Reform legislation enables Westhoughton qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| 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 procure Westhoughton 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 conveyancing solicitor we work with provide it.
Reuben was the the leasehold proprietor of a 2 bedroom apartment in Westhoughton on the market with a lease of fraction over fifty eight years outstanding. Reuben informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr John Moore was assigned a lease of a recently refurbished flat in Westhoughton in March 2001. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Westhoughton with an extended lease were worth £200,800. The average amount of ground rent was £65 collected per annum. The lease lapsed in 2085. Given that there were 60 years left we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus fees.
In 2012 we were called by Dr Rachel Ward who, having moved into a studio apartment in Westhoughton in March 1998. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical homes in Westhoughton with a long lease were valued about £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out on 15 March 2096. Having 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.