With a domestic leasehold premises in West Dean, you are in fact renting 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 may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in West Dean with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has less than 80 years remaining, under the current legislation the freeholder can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in West Dean with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
The conveyancing solicitors that we work with procure West Dean lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of eight months of lengthy correspondence with the landlord of her studio flat in West Dean, Poppy initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The transaction was finalised in May 2009. The freeholder’s fees were restricted to about 600 GBP.
In 2013 we were approached by Ms W Johnson who, having completed a one bedroom apartment in West Dean in April 2011. We are asked if we could estimate the price could be for a ninety year lease extension. Similar residencies in West Dean with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £55 billed annually. The lease finished on 4 May 2103. Taking into account 78 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
In 2011 we were e-mailed by Dr Ryan Vincent who, having moved into a one bedroom flat in West Dean in July 2009. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative homes in West Dean with 100 year plus lease were worth £191,000. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2083. Taking into account 58 years remaining we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.