On the balance of probabilities where you own a flat in Ladywood you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 Ladywood 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 lawyer we work with provide it.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her one bedroom apartment in Ladywood, Caitlin started the lease extension process as the 80 year mark was swiftly coming. The transaction was concluded in November 2005. The landlord’s costs were negotiated to slightly above 500 GBP.
Mr and Mrs. W Moore owned a garden flat in Ladywood in September 2012. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparative residencies in Ladywood with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected annually. The lease ran out on 11 June 2100. Considering the 75 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2014 we were e-mailed by Mr E Nelson who, having completed a garden flat in Ladywood in July 2003. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparative flats in Ladywood with an extended lease were valued about £168,800. The mid-range ground rent payable was £60 billed yearly. The lease terminated in 2080. Having 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.