It’s an underpublicised truth that a Westerham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Westerham property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Westerham will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Westerham with more than 100 years unexpired 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Engaging our service gives you increased control over the value of your Westerham leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Gabriel, started to get near to the eighty-year threshold with the lease on his studio apartment in Westerham. Having bought his flat two decades ago, the length of the lease was of no bearing. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Gabriel extended the lease at the eleventh hour last May. Gabriel and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the price would have increased by a minimum £1,025.
Mr and Mrs. N Stewart completed a basement flat in Westerham in February 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Westerham with a long lease were valued about £240,600. The mid-range amount of ground rent was £60 collected annually. The lease termination date was on 13 November 2088. Given that there were 62 years remaining we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Ms Poppy Ali owned a basement flat in Westerham in February 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Westerham with an extended lease were worth £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed on 16 July 2077. Given that there were 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.