Westhoughton leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Westhoughton will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Westhoughton can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Westhoughton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jayden, came perilously close to the 80-year mark with the lease on his leasehold flat in Westhoughton. Having bought his property 19 years previously, the length of the lease was of no concern. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Jayden was able to extend his lease just in the nick of time in January. Jayden and the freeholder via the managing agents subsequently agreed on a premium of £5,500 . If the lease had gone below eighty years, the sum would have increased by at least £950.
Last May we were e-mailed by Mr Arthur Robinson , who moved into a recently refurbished flat in Westhoughton in February 2005. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Westhoughton with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease expired in 2086. Given that there were 60 years left we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
Mr and Mrs. L Lefebvre was assigned a lease of a purpose-built apartment in Westhoughton in July 1996. The question 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 Westhoughton with a long lease were valued around £255,000. The average amount of ground rent was £50 billed monthly. The lease elapsed in 2097. Having 71 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.