As the the remaining lease term of a Westonzoyland domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Westonzoyland will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Westonzoyland with in excess of one hundred years left 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Westonzoyland,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Westonzoyland valuers.
Harry owned a 2 bedroom apartment in Westonzoyland on the market with a lease of a few days over 61 years left. Harry on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. H Taylor moved into a purpose-built apartment in Westonzoyland in March 1995. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical flats in Westonzoyland with an extended lease were valued about £168,800. The average ground rent payable was £60 collected yearly. The lease terminated on 6 November 2080. Having 55 years left we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.
Mr and Mrs. V Allen completed a newly refurbished apartment in Westonzoyland in August 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Westonzoyland with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 21 June 2091. Having 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.