The re-sale value of a leasehold property in West Hill depends on how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year threshold. Statute entitles West Hill qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in West Hill can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with West Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Nathaniel, came precariously close to the eighty-year threshold with the lease on his basement apartment in West Hill. In buying his home two decades ago, the lease term was of minimal interest. by good luck, he recognised he needed to take steps soon on Extending the lease. Nathaniel extended the lease just in the nick of time in September. Nathaniel and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the premium would have become more exhorbitant by at least £950.
Last year we were approach by Dr Y Gunderson , who owned a one bedroom flat in West Hill in June 2006. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical residencies in West Hill with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 billed monthly. The lease elapsed in 2076. Having 51 years unexpired we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including costs.
An example of a Freehold Enfranchisement decision for a West Hill premises is 158 West Hill in November 2010. the Tribunal held that the premium to be paid for the freehold reversion should be £99,650 This case affected 7 flats. The unexpired term was 75.88 years.