Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Westbury. Clearly, the term of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Westbury have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful attention before delaying your Westbury lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
Leasehold residencies in Westbury with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Westbury leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a conversion flat in Westbury on the market with a lease of a few days over 59 years left. Jonathan on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and secured satisfactory deal informally and sell the property.
Dr B Flores was assigned a lease of a one bedroom apartment in Westbury in June 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Westbury with 100 year plus lease were worth £174,200. The average ground rent payable was £55 invoiced annually. The lease concluded in 2077. Given that there were 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.
Last Christmas we were contacted by Mr G Sharif , who owned a newly refurbished apartment in Westbury in January 2005. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar properties in Westbury with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 14 May 2097. Taking into account 71 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.