When it comes to domestic leasehold property in Westonzoyland, you are actually purchasing an entitlement to reside 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 are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Westonzoyland with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years left, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her ground floor apartment in Westonzoyland, Stephanie initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was finalised in February 2008. The landlord’s fees were negotiated to about six hundred GBP.
In 2011 we were approached by Mrs B Morgan who, having completed a garden flat in Westonzoyland in January 1997. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable homes in Westonzoyland with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 collected monthly. The lease lapsed on 23 September 2092. Having 67 years left we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.
In 2014 we were approached by Ms Charlotte Bonnet who, having completed a recently refurbished flat in Westonzoyland in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical premises in Westonzoyland with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded in 2103. Given that there were 78 years outstanding we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.