The re-sale value of a leasehold property in Ladywood depends on how long the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised well before the eighty year cut off point. Statute enables Ladywood qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Ladywood with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Ladywood,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ladywood valuers.
Noah was the the leasehold owner of a studio flat in Ladywood being sold with a lease of fraction over sixty years left. Noah on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Summer we were contacted by Mr and Mrs. L Roux , who moved into a first floor flat in Ladywood in January 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical homes in Ladywood with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease expiry date was on 4 September 2084. Having 59 years remaining we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus legals.
Last month we were approach by Mr and Mrs. M Rodríguez , who was assigned a lease of a one bedroom flat in Ladywood in October 1999. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative premises in Ladywood with an extended lease were valued about £255,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish on 18 March 2095. Taking into account 70 years remaining we approximated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 plus professional charges.