It’s a harsh truth that a Westhoughton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Westhoughton property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Westhoughton will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Westhoughton with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Westhoughton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Westhoughton valuers.
Edward owned a conversion apartment in Westhoughton being marketed with a lease of a little over 59 years outstanding. Edward informally spoke with his landlord a well known Bristol-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 £50 per annum. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last month we were called by Mr Cameron Roberts , who owned a studio apartment in Westhoughton in January 1995. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Westhoughton with a long lease were worth £245,000. The average ground rent payable was £45 collected annually. The lease concluded in 2094. Having 68 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Mr Dylan Dupont bought a basement apartment in Westhoughton in March 2006. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Westhoughton with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 28 November 2105. Taking into account 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.