Chances are that where you own a flat in Westerham you actually own a long leasehold interest over your property
Leasehold properties in Westerham with more than 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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you enhanced control over the value of your Westerham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her ground floor apartment in Westerham, Hannah initiated the lease extension process as the eighty year mark was quickly nearing. The legal work completed in November 2009. The freeholder’s charges were negotiated to under 600 GBP.
Mrs Chantelle James acquired a recently refurbished flat in Westerham in June 2009. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical properties in Westerham with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded in 2096. Having 71 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Ms D Sánchez took over the lease of a purpose-built apartment in Westerham in June 2007. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Westerham with an extended lease were worth £225,800. The average ground rent payable was £60 billed monthly. The lease finished on 12 April 2085. Taking into account 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus fees.