The re-sale value of a leasehold property in Westgate on Sea is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised well before the 80 year threshold. Current legislation enables Westgate on Sea qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin |
Using our service will provide you better control over the value of your Westgate on Sea leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold owner of a 2 bedroom apartment in Westgate on Sea on the market with a lease of a little over sixty years unexpired. Max informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. F Sánchez who, having moved into a garden flat in Westgate on Sea in September 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable residencies in Westgate on Sea with a long lease were valued around £250,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2095. Given that there were 69 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Christmas we were phoned by Mr and Mrs. W Gray , who completed a first floor apartment in Westgate on Sea in April 1997. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative flats in Westgate on Sea with a long lease were worth £285,000. The average ground rent payable was £55 billed per annum. The lease ran out in 2106. Having 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.