On the balance of probabilities where you own a flat in Westbury On Trym you actually own a long leasehold interest over your property
Leasehold premises in Westbury On Trym with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Westbury On Trym leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago George, started to get near to the 80-year mark with the lease on his garden apartment in Westbury On Trym. Having purchased his home 19 years ago, the length of the lease was of little relevance. Luckily, he noticed he would soon be paying way over the odds for a lease extension. George was able to extend his lease just ahead of time last January. George and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he not met the deadline, the amount would have become more costly by a minimum £975.
In 2013 we were contacted by Mr Ben Collins who, having took over the lease of a recently refurbished flat in Westbury On Trym in October 2008. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative residencies in Westbury On Trym with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished on 1 January 2106. Taking into account 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Mr and Mrs. G Flores purchased a one bedroom apartment in Westbury On Trym in January 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Westbury On Trym with an extended lease were valued around £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2095. Given that there were 69 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.