On the balance of probabilities if you own a flat in Westbury you actually own a long leasehold interest over your property
Leasehold properties in Westbury with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Westbury 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.
Caleb owned a 2 bedroom apartment in Westbury being sold with a lease of a few days over 72 years remaining. Caleb informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. F Garcia acquired a purpose-built flat in Westbury in August 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Westbury with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected per annum. The lease expired in 2096. Taking into account 70 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
In 2014 we were e-mailed by Mr and Mrs. H Jones who, having acquired a first floor flat in Westbury in July 2007. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar flats in Westbury with a long lease were worth £223,400. The average ground rent payable was £60 collected per annum. The lease ended in 2085. Taking into account 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus costs.