With a long leasehold premises in Westonzoyland, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Westonzoyland with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Westonzoyland with more than 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Westonzoyland leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her first floor apartment in Westonzoyland, Morgan started the lease extension process just as her lease was coming close to the critical eighty-year mark. The lease extension completed in June 2009. The landlord’s fees were kept to an absolute minimum.
Last Spring we were e-mailed by Dr Georgia López , who purchased a ground floor flat in Westonzoyland in November 2004. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Westonzoyland with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 18 February 2083. Considering the 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
In 2009 we were contacted by Mr U Brown who, having acquired a one bedroom apartment in Westonzoyland in June 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Westonzoyland with a long lease were worth £245,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2094. Considering the 68 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.