With a residential leasehold premises in Westminster, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Westminster with a lease approaching 81 years left should seriously consider extending it sooner than later. Once the lease term has fewer than 80 years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Westminster with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Lease extensions in Westminster can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 Westminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her basement apartment in Westminster, Natasha started the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in July 2012. The landlord’s fees were negotiated to slightly above 550 GBP.
Last month we were called by Dr Leo Ricardo , who purchased a newly refurbished flat in Westminster in January 2012. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar homes in Westminster with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 invoiced annually. The lease lapsed on 26 May 2083. Given that there were 57 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Westminster property is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case was in relation to 2 flats. The unexpired term was 56 years.