Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in West Cross. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in West Cross have the legal entitlement to extend the lease for an additional 90 years under statute. Do give due consideration before delaying your West Cross lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society |
Using our service gives you increased control over the value of your West Cross leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold proprietor of a conversion flat in West Cross on the market with a lease of a few days over sixty years left. Alex on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr Cameron Morel moved into a first floor flat in West Cross in June 2004. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in West Cross with a long lease were valued around £223,400. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2085. Taking into account 59 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of expenses.
In 2010 we were phoned by Dr Teddy Ward who, having purchased a ground floor flat in West Cross in October 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable flats in West Cross with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 7 September 2105. Taking into account 79 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.