Westbourne leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Westbourne will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Westbourne with more than 100 years outstanding 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Westbourne,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Westbourne valuers.
Last October Stanley, came precariously close to the eighty-year threshold with the lease on his garden apartment in Westbourne. In buying his flat 18 years previously, the unexpired term was of minimal concern. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Stanley extended the lease just under the wire last January. Stanley and the landlord ultimately settled on sum of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £875.
In 2013 we were contacted by Mrs P Walker who, having purchased a newly refurbished flat in Westbourne in September 2001. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Westbourne with 100 year plus lease were in the region of £166,800. The mid-range amount of ground rent was £50 invoiced monthly. The lease termination date was in 2076. Having 50 years remaining we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.
Mr Muhammad Nguyen took over the lease of a ground floor apartment in Westbourne in February 2009. We are asked if we could approximate the price could be for a ninety year lease extension. Similar flats in Westbourne with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended on 10 November 2096. Given that there were 70 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.