Westhoughton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Westhoughton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Westhoughton you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Westhoughton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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 Tommy, came very close to the 80-year threshold with the lease on his studio flat in Westhoughton. Having bought his property twenty years previously, the lease term was of minimal relevance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Tommy arranged for a lease extension at the eleventh hour in March. Tommy and the freeholder in the end settled on a premium of £5,000 . If the lease had dropped lower than 80 years, the figure would have escalated by a minimum £1,075.
Last Christmas we were phoned by Dr P Wright , who completed a basement apartment in Westhoughton in May 2011. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparable homes in Westhoughton with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was in 2088. Considering the 63 years left we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including fees.
Mrs Alice Carter moved into a purpose-built apartment in Westhoughton in July 1997. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar flats in Westhoughton with a long lease were worth £265,000. The average ground rent payable was £50 collected quarterly. The lease expired in 2099. Having 74 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.