On the balance of probabilities if you own a flat in Westminster you actually own a long leasehold interest over your property
Leasehold premises in Westminster with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Westminster,the lease extension solicitors 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.
Half a year ago Leo, started to get near to the 80-year mark with the lease on his one bedroom flat in Westminster. In buying his home two decades ago, the length of the lease was of little concern. by good luck, he noticed he needed to take steps soon on Extending the lease. Leo arranged for a lease extension just under the wire in April. Leo and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had dipped below eighty years, the figure would have gone up by a minimum £1,000.
Mr and Mrs. B Girard acquired a first floor apartment in Westminster in June 2011. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable premises in Westminster with 100 year plus lease were worth £186,000. The average ground rent payable was £65 invoiced quarterly. The lease end date was on 21 September 2083. Having 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 not including fees.
An example of a Lease Extension matter before the tribunal for a Westminster flat 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 remaining number of years on the lease was 56 years.