The market value of a leasehold property in Westhoughton depends on how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded ahead of the 80 year cut off point. Statute enables Westhoughton qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Westhoughton with over 100 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Westhoughton can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with 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 Liam, started to get near to the 80-year mark with the lease on his leasehold apartment in Westhoughton. In buying his property 19 years previously, the lease term was of no relevance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Liam extended the lease at the eleventh hour in April. Liam and the landlord in the end agreed on the final figure of £6,000 . If he not met the deadline, the amount would have increased by a minimum £1,000.
Last Autumn we were approach by Dr J Richardson , who owned a one bedroom apartment in Westhoughton in April 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Westhoughton with 100 year plus lease were worth £275,000. The average ground rent payable was £55 billed quarterly. The lease lapsed in 2103. Given that there were 77 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
Last month we were e-mailed by Mr and Mrs. H Lewis , who bought a ground floor apartment in Westhoughton in February 2005. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical flats in Westhoughton with a long lease were worth £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease ended on 21 March 2083. Having 57 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.