The re-sale value of a leasehold property in Handsworth is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded ahead of the 80 year cut off point. Statute entitles Handsworth qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Handsworth can be a difficult process. We recommend you secure professional help 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 in-depth market knowledge dealing with Handsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her studio flat in Handsworth, Lauren started the lease extension process as the 80 year mark was quickly approaching. The lease extension was concluded in November 2015. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were phoned by Ms P Martinez , who bought a purpose-built apartment in Handsworth in June 1997. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative properties in Handsworth with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed in 2101. Taking into account 76 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Last year we were contacted by Ms Hollie Moore , who purchased a first floor flat in Handsworth in August 2002. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable properties in Handsworth with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed in 2090. Having 65 years unexpired we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.