Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ladywood. Inevitably, the term of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Ladywood have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give due consideration before delaying your Ladywood lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Ladywood with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Ladywood can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 in-depth market knowledge 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.
After lengthy discussions with the landlord of her garden flat in Ladywood, Eleanor commenced the lease extension process just as the lease was nearing the critical 80-year mark. The legal work completed in January 2005. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Ms Rebecca Adams , who completed a one bedroom apartment in Ladywood in July 2005. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparable residencies in Ladywood with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 collected every twelve months. The lease concluded in 2106. Considering the 80 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
In 2011 we were approached by Mr Aaron Brooks who, having acquired a one bedroom flat in Ladywood in March 2012. The question was if we could approximate the price would be to extend the lease by an additional years. Comparable residencies in Ladywood with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 billed annually. The lease finished in 2086. Given that there were 60 years unexpired we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.