Westerham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Westerham tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Westerham you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Westerham with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Westerham can be a difficult process. We recommend you get professional help from a conveyancer 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 Westerham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Oliver, started to get close to the eighty-year threshold with the lease on his studio flat in Westerham. Having bought his property 19 years ago, the length of the lease was of minimal importance. Luckily, he realised he needed to take action soon on a lease extension. Oliver arranged for a lease extension just under the wire in July. Oliver and the freeholder ultimately agreed on an amount of £5,000 . If the lease had fallen lower than eighty years, the premium would have gone up by a minimum £1,150.
Dr W Gunderson purchased a garden flat in Westerham in July 1997. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable properties in Westerham with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 billed annually. The lease concluded in 2083. Considering the 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.
In 2010 we were contacted by Mrs Grace Ali who, having was assigned a lease of a purpose-built apartment in Westerham in January 1999. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative properties in Westerham with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded on 1 March 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.