With a domestic leasehold property in Westerham, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Westerham with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once the lease term has less than 80 years outstanding, under the current statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Westerham with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Westerham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Westerham valuers.
During the course of the last few months Liam, started to get close to the 80-year mark with the lease on his garden flat in Westerham. Having bought his home 19 years previously, the lease term was of little concern. Luckily, he noticed he needed to take action soon on a lease extension. Liam extended the lease at the eleventh hour last January. Liam and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dipped below eighty years, the figure would have escalated by a minimum £1,025.
Last year we were contacted by Dr C Cook , who bought a garden apartment in Westerham in June 2003. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical homes in Westerham with an extended lease were valued about £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease concluded in 2089. Having 64 years outstanding we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.
In 2013 we were contacted by Dr K Garcia who, having bought a one bedroom flat in Westerham in August 2003. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Westerham with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 11 September 2078. Taking into account 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.