The closer a domestic lease in Ladywood nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Ladywood will qualify for this right; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ladywood can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ladywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alfie owned a 2 bedroom apartment in Ladywood on the market with a lease of a few days over 72 years remaining. Alfie informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2011 we were phoned by Mr and Mrs. K Clark who, having took over the lease of a first floor apartment in Ladywood in September 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative premises in Ladywood with 100 year plus lease were valued about £183,600. The average amount of ground rent was £65 collected monthly. The lease lapsed on 14 September 2083. Taking into account 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.
Last Winter we were called by Dr Stanley Clarke , who was assigned a lease of a recently refurbished apartment in Ladywood in January 2004. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Ladywood with a long lease were valued around £245,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 26 November 2094. Given that there were 68 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.