The market value of a leasehold property in Westbury depends on how long the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised ahead of the 80 year threshold. Current legislation enables Westbury qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Westbury can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Westbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her garden flat in Westbury, Chelsea commenced the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension was concluded in September 2011. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. U Wood , who took over the lease of a purpose-built flat in Westbury in September 2009. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Westbury with an extended lease were worth £206,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out on 6 August 2082. Having 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.
Last July we were phoned by Mr Caleb Hernández , who completed a ground floor flat in Westbury in January 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Westbury with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded on 26 June 2102. Considering the 76 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.