The closer a residential lease in Westgate on Sea nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Westgate on Sea will qualify for this right; that being said a lawyer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Westgate on Sea with over one hundred years left 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Westgate on Sea,the lease extension lawyers that we work with will always be happy 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.
Theo was the the leasehold owner of a conversion flat in Westgate on Sea on the market with a lease of a little over 61 years left. Theo on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were e-mailed by Mr and Mrs. L Rodríguez who, having owned a recently refurbished flat in Westgate on Sea in January 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Westgate on Sea with an extended lease were valued about £210,600. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish in 2088. Having 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.
Last Autumn we were e-mailed by Mr and Mrs. D Clarke , who moved into a garden apartment in Westgate on Sea in August 2011. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar homes in Westgate on Sea with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished in 2099. Having 73 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.