West Cross leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most West Cross tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in West Cross you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in West Cross can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring West Cross lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jason owned a conversion apartment in West Cross being sold with a lease of just over sixty years unexpired. Jason informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jason to exercise his statutory right. Jason procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2010 we were contacted by Ms F Martin who, having completed a garden apartment in West Cross in July 2002. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative residencies in West Cross with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish in 2105. Given that there were 80 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
In 2010 we were approached by Dr U Sánchez who, having completed a ground floor flat in West Cross in May 2002. The question was if we could estimate the price could be for a ninety year lease extension. Comparative residencies in West Cross with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 collected monthly. The lease expired in 2094. Considering the 69 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.