Ladywell leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Ladywell will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Ladywell with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ladywell can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 procuring Ladywell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a conversion apartment in Ladywell on the market with a lease of just over sixty years left. Felix informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2013 we were contacted by Mr and Mrs. G Martínez who, having was assigned a lease of a one bedroom flat in Ladywell in April 1995. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Ladywell with a long lease were worth £208,200. The average amount of ground rent was £65 billed monthly. The lease finished in 2082. Having 61 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Ladywell flat is 44 Elmer Road in January 2013. The Tribunal dacied that amount to be paid by the Leaseholders for the Landlords freehold reversion was £12,951 as at the valuation date (20" September 2012).This matter was referred back to the Bromley County Court to deal with costs, fees and any other outstanding matters. This case was in relation to 2 flats. The unexpired term was 74.25 years.