It’s an underpublicised truth that a Westgate on Sea 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 Westgate on Sea property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Westgate on Sea will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Westgate on Sea with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Westgate on Sea,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Westgate on Sea valuers.
In 2014 Luca, started to get close to the eighty-year mark with the lease on his basement flat in Westgate on Sea. In buying his property two decades ago, the length of the lease was of minimal bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Luca arranged for a lease extension at the eleventh hour last August. Luca and the freeholder via the management company subsequently agreed on an amount of £5,000 . If he not met the deadline, the figure would have become more costly by at least £1,125.
Mr and Mrs. Y Robinson bought a one bedroom apartment in Westgate on Sea in September 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical homes in Westgate on Sea with an extended lease were worth £265,000. The average ground rent payable was £55 invoiced quarterly. The lease termination date was on 14 July 2100. Considering the 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Last Autumn we were approach by Dr Aiden Collins , who owned a one bedroom apartment in Westgate on Sea in August 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparative properties in Westgate on Sea with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced monthly. The lease expired in 2080. Considering the 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including costs.