It’s a harsh certainty that a Westbury On Trym residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Westbury On Trym property prices.Once your lease nears 85ish years, you should start considering 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 slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Westbury On Trym will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Westbury On Trym with over 100 years remaining 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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. |
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 conveyancing solicitor we work with provide it.
During the course of the last few months Theo, came precariously near to the eighty-year threshold with the lease on his basement apartment in Westbury On Trym. In buying his flat 18 years previously, the lease term was of minimal bearing. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Theo was able to extend his lease at the eleventh hour in July. Theo and the landlord ultimately agreed on an amount of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £1,125.
Mr Thomas Murphy acquired a one bedroom flat in Westbury On Trym in November 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Westbury On Trym with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 billed monthly. The lease lapsed on 4 January 2090. Given that there were 65 years unexpired we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
Ms Mollie Adams was assigned a lease of a first floor flat in Westbury On Trym in January 2011. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar properties in Westbury On Trym with 100 year plus lease were valued about £196,400. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 21 July 2079. Given that there were 54 years remaining we estimated the premium to the freeholder to extend the lease to be between £35,200 and £40,600 plus fees.