Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Droitwich Spa. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Droitwich Spa have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Droitwich Spa lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Droitwich Spa can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience dealing with Droitwich Spa lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted correspondence with the freeholder of her garden apartment in Droitwich Spa, Bethan started the lease extension process as the eighty year mark was rapidly approaching. The lease extension was finalised in November 2007. The landlord’s costs were negotiated to slightly above five hundred pounds.
Last Christmas we were phoned by Dr Jackson González , who was assigned a lease of a garden flat in Droitwich Spa in May 2003. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical premises in Droitwich Spa with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 collected annually. The lease finished in 2075. Considering the 50 years left we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.
Dr P Simon owned a one bedroom apartment in Droitwich Spa in March 2011. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Droitwich Spa with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 billed yearly. The lease terminated on 11 March 2086. Having 61 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.