Dawley and Lawley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Dawley and Lawley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dawley and Lawley you would be well advised to check if your lease has between 70 and ninety years left. There are good reasons why a Dawley and Lawley leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Dawley and Lawley with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Dawley and Lawley,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 experience and the close ties they enjoy with Dawley and Lawley valuers.
Last year Henry, started to get near to the 80-year mark with the lease on his studio apartment in Dawley and Lawley. In buying his flat 19 years ago, the lease term was of no concern. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Henry was able to extend his lease just under the wire last April. Henry and the freeholder via the management company in the end settled on an amount of £5,500 . If he had missed the deadline, the price would have increased by at least £1,125.
In 2014 we were contacted by Mr G Roux who, having was assigned a lease of a one bedroom apartment in Dawley and Lawley in February 1999. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparable properties in Dawley and Lawley with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease expired in 2106. Taking into account 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2012 we were called by Mrs D Wood who, having took over the lease of a one bedroom apartment in Dawley and Lawley in January 2007. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Comparative residencies in Dawley and Lawley with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 invoiced per annum. The lease came to a finish on 12 October 2086. Considering the 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including professional charges.