The nearer a domestic lease in Westbury nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Westbury will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Westbury with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service gives you better control over the value of your Westbury leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Benjamin, started to get close to the eighty-year mark with the lease on his garden apartment in Westbury. In buying his property 18 years previously, the length of the lease was of no importance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Benjamin extended the lease just under the wire last March. Benjamin and the landlord subsequently agreed on sum of £5,000 . If the lease had descended to less than 80 years, the figure would have gone up by at least £1,000.
Mr and Mrs. F Miller acquired a purpose-built flat in Westbury in March 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Westbury with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 collected monthly. The lease expiry date was on 15 January 2089. Taking into account 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus fees.
Last month we were e-mailed by Dr G Parker , who purchased a one bedroom apartment in Westbury in July 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Westbury with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed on 3 March 2078. Taking into account 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.