Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Westminster. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Westminster have the right to extend the lease for a further ninety years under legislation. Please give due deliberation before putting off your Westminster lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Westminster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy correspondence with the landlord of her garden flat in Westminster, Courtney started the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in February 2006. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Mr Adam White who, having bought a one bedroom flat in Westminster in March 2005. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar flats in Westminster with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 billed monthly. The lease expiry date was in 2076. Considering the 50 years remaining we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Westminster premises 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 as at the valuation date was 56 years.