On the balance of probabilities where you own a flat in Westminster you actually own a long leasehold interest over your property
Leasehold premises in Westminster with over 100 years outstanding on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|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.|
Irrespective of whether you are a tenant or a landlord in Westminster,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Westminster valuers.
Ibrahim owned a conversion apartment in Westminster on the market with a lease of a few days over 59 years left. Ibrahim informally contacted his landlord being 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 an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Ms Amelia Gray completed a newly refurbished flat in Westminster in May 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Westminster with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated on 27 March 2092. Having 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension case 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 number of years remaining on the existing lease(s) was 56 years.