As the length of the unexpired term of a Westhoughton domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Westhoughton will meet the qualifying criteria; however a conveyancer will be able to advise whether you qualify 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.
Leasehold premises in Westhoughton with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Westhoughton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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.
Following lengthy correspondence with the freeholder of her ground floor apartment in Westhoughton, Isabel started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work completed in February 2008. The landlord’s charges were kept to an absolute minimum.
Ms W Thomas took over the lease of a recently refurbished apartment in Westhoughton in March 2006. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative homes in Westhoughton with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended in 2091. Considering the 65 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2014 we were called by Mrs Bethany Wright who, having bought a purpose-built apartment in Westhoughton in October 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar residencies in Westhoughton with a long lease were worth £270,000. The average amount of ground rent was £55 billed yearly. The lease termination date was on 5 May 2102. Taking into account 76 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.