Westbourne leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Westbourne will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Westbourne can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Westbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Edward, came dangerously close to the eighty-year threshold with the lease on his ground floor flat in Westbourne. In buying his home two decades ago, the length of the lease was of minimal significance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Edward arranged for a lease extension just in the nick of time last May. Edward and the landlord eventually settled on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by at least £850.
Dr F Petit was assigned a lease of a studio apartment in Westbourne in March 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Westbourne with a long lease were in the region of £295,000. The average ground rent payable was £45 billed annually. The lease came to a finish in 2100. Taking into account 74 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
Last Summer we were contacted by Mr and Mrs. J Brooks , who took over the lease of a one bedroom apartment in Westbourne in May 2005. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Identical properties in Westbourne with a long lease were worth £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired on 27 November 2089. Having 63 years unexpired we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.