Westbury leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be due. Flat owners in Westbury will usually qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Westbury with in excess of one hundred years remaining 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 situations there is often little upside in buying the freehold unless savings on ground rent and service 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you enhanced control over the value of your Westbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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.
Lucas was the the leasehold proprietor of a high value flat in Westbury being sold with a lease of fraction over 59 years left. Lucas informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last September we were phoned by Mr V Thompson , who purchased a studio apartment in Westbury in August 2011. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar flats in Westbury with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 billed monthly. The lease ran out in 2078. Having 53 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
Last Christmas we were contacted by Mrs G Bailey , who moved into a garden apartment in Westbury in May 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Westbury with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 billed per annum. The lease terminated on 27 September 2098. Taking into account 73 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.