On the balance of probabilities where you own a flat in West Cross you actually own a long leasehold interest over your property
Leasehold premises in West Cross with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in West Cross,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Cross valuers.
Milo was the the leasehold owner of a 2 bedroom apartment in West Cross being sold with a lease of just over 72 years unexpired. Milo informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were called by Mr B Bernard who, having took over the lease of a one bedroom apartment in West Cross in February 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in West Cross with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2086. Taking into account 61 years left we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of legals.
Last Summer we were contacted by Dr N Parker , who purchased a ground floor flat in West Cross in February 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in West Cross with a long lease were worth £171,800. The average ground rent payable was £55 invoiced quarterly. The lease lapsed on 12 June 2075. Taking into account 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including legals.