It’s a harsh certainty that a Westgate on Sea residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few 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 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 dips lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Westgate on Sea will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Westgate on Sea with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service will provide you enhanced control over the value of your Westgate on Sea leasehold, as your property will be more valuable and marketable in respect of 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.
In 2014 Tommy, came seriously near to the eighty-year threshold with the lease on his first floor apartment in Westgate on Sea. Having bought his flat two decades ago, the lease term was of no concern. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Tommy extended the lease just ahead of time last August. Tommy and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had slid to less than eighty years, the amount would have gone up by at least £925.
Mr N Torres completed a basement apartment in Westgate on Sea in November 1996. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative homes in Westgate on Sea with an extended lease were valued about £225,400. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2089. Considering the 64 years unexpired we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including legals.
Mr and Mrs. S Reed took over the lease of a basement flat in Westgate on Sea in November 2006. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical properties in Westgate on Sea with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired on 13 June 2100. Taking into account 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.