As the the remaining lease term of a Westhoughton residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired 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 extend the lease without delay. Many flat owners in Westhoughton will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Westhoughton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a high value flat in Westhoughton being marketed with a lease of just over fifty eight years outstanding. Kyle on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were contacted by Mr Sam Walker who, having bought a garden flat in Westhoughton in February 2004. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Westhoughton with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished on 20 November 2079. Considering the 53 years remaining we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of costs.
In 2014 we were called by Mr Teddy Lefèvre who, having purchased a ground floor apartment in Westhoughton in August 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Westhoughton with an extended lease were worth £220,400. The mid-range ground rent payable was £45 collected per annum. The lease ended on 4 February 2090. Given that there were 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.