The market value of Westhoughton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 gives you enhanced control over the value of your Westhoughton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Toby owned a high value apartment in Westhoughton on the market with a lease of just over fifty eight years outstanding. Toby on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2012 we were approached by Mrs S Mason who, having completed a purpose-built apartment in Westhoughton in February 2010. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable flats in Westhoughton with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 14 August 2095. Given that there were 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. Y López completed a one bedroom flat in Westhoughton in March 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Westhoughton with a long lease were in the region of £246,800. The average amount of ground rent was £60 collected per annum. The lease lapsed on 18 January 2075. Considering the 50 years remaining we estimated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus expenses.