When it comes to residential leasehold property in West Cross, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Residents in West Cross with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years left, under the relevant Act the landlord can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in West Cross can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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.
Henry owned a 2 bedroom apartment in West Cross being marketed with a lease of just over 61 years unexpired. Henry on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2011 we were contacted by Ms Naomi David who, having purchased a one bedroom flat in West Cross in March 2001. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Similar premises in West Cross with 100 year plus lease were valued around £265,200. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2092. Considering the 66 years as a residual term we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus costs.
Last November we were e-mailed by Mr H Bailey , who owned a one bedroom flat in West Cross in September 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in West Cross with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 collected per annum. The lease expired on 19 February 2081. Considering the 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.