It’s an underpublicised certainty that a West Dean residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the West Dean property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most flat owners in West Dean will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in West Dean with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your West Dean leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her purpose-built flat in West Dean, Poppy commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was finalised in April 2014. The freeholder’s charges were negotiated to a tad over 450 GBP.
Mr K Martinez was assigned a lease of a garden flat in West Dean in July 2010. The question was if we could approximate the price would be for a 90 year lease extension. Comparable residencies in West Dean with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected every twelve months. The lease came to a finish on 5 January 2092. Taking into account 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
Mrs Stephanie Stewart took over the lease of a purpose-built flat in West Dean in August 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar premises in West Dean with a long lease were valued about £275,000. The average ground rent payable was £55 billed monthly. The lease terminated on 16 October 2103. Having 77 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.