With a domestic leasehold property in West Cross, 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. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in West Cross with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the relevant statute the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in West Cross with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in West Cross can be a difficult process. We recommend you obtain guidance from a lawyer 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 a wealth of experience 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.
Half a year ago Ethan, came perilously near to the eighty-year mark with the lease on his first floor flat in West Cross. Having purchased his flat 18 years previously, the length of the lease was of minimal importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Ethan was able to extend his lease just under the wire in August. Ethan and the landlord subsequently agreed on a premium of £5,000 . If he not met the deadline, the figure would have increased by a minimum £1,000.
Mr and Mrs. Y Ramírez bought a first floor apartment in West Cross in August 2008. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in West Cross with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 billed per annum. The lease expiry date was in 2081. Taking into account 56 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
Mr and Mrs. F Girard completed a first floor flat in West Cross in May 2007. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in West Cross with an extended lease were valued around £300,000. The average ground rent payable was £50 collected annually. The lease terminated on 21 June 2101. Having 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.