With a long leasehold premises in Westbury On Trym, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Westbury On Trym with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Westbury On Trym 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.
Trailing unsuccessful correspondence with the landlord of her two bedroom apartment in Westbury On Trym, Morgan started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension completed in May 2006. The landlord’s charges were kept to an absolute minimum.
Mrs J Patel owned a basement apartment in Westbury On Trym in January 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Westbury On Trym with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed quarterly. The lease expiry date was on 15 June 2102. Considering the 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Last Autumn we were approach by Ms I Cox , who completed a basement flat in Westbury On Trym in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative flats in Westbury On Trym with an extended lease were worth £265,200. The mid-range ground rent payable was £65 billed quarterly. The lease ended in 2091. Considering the 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus legals.