Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Westhoughton. Clearly, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Westhoughton have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give careful deliberation before delaying your Westhoughton lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Westhoughton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Westhoughton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Austin, started to get near to the eighty-year mark with the lease on his leasehold apartment in Westhoughton. In buying his property twenty years previously, the unexpired term was of little relevance. Thankfully, he became aware that he needed to take action soon on Extending the lease. Austin was able to extend his lease at the eleventh hour in August. Austin and the landlord who owned the flat above ultimately settled on sum of £6,000 . If the lease had dipped to less than eighty years, the sum would have escalated by a minimum £1,100.
Mrs Holly Johnson moved into a basement flat in Westhoughton in May 2002. The question was if we could approximate the price could be for a ninety year lease extension. Comparative flats in Westhoughton with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 billed quarterly. The lease terminated in 2088. Given that there were 62 years remaining we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.
Mr and Mrs. Y Harris took over the lease of a recently refurbished apartment in Westhoughton in November 2009. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar properties in Westhoughton with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced per annum. The lease concluded in 2099. Considering the 73 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.