With a long leasehold property in Westonzoyland, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Westonzoyland with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years left, under the relevant legislation the landlord can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Westonzoyland with over one hundred 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The lawyers that we work with handle Westonzoyland 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 conveyancer we work with provide it.
In recent months Jasper, came dangerously near to the 80-year mark with the lease on his garden flat in Westonzoyland. Having purchased his property twenty years previously, the length of the lease was of no importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Jasper arranged for a lease extension at the eleventh hour in January. Jasper and the freeholder via the management company eventually settled on the final figure of £6,000 . If he not met the deadline, the premium would have increased by at least £925.
In 2012 we were called by Ms Isobel Bailey who, having was assigned a lease of a newly refurbished flat in Westonzoyland in September 2011. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Westonzoyland with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded on 16 June 2099. Given that there were 74 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last month we were e-mailed by Dr Finn López , who completed a one bedroom flat in Westonzoyland in May 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Westonzoyland with a long lease were valued around £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease concluded on 7 August 2079. Considering the 54 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.