The re-sale value of a leasehold property in Ladywell depends on how long the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year mark. Current legislation enables Ladywell qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ladywell can be a difficult process. We recommend you secure guidance 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 a wealth of experience 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.
In recent months Nathaniel, started to get close to the 80-year threshold with the lease on his first floor apartment in Ladywell. In buying his flat 18 years ago, the unexpired term was of little significance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Nathaniel extended the lease just under the wire last March. Nathaniel and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had dropped to less than 80 years, the figure would have increased by at least £1,075.
In 2013 we were phoned by Mr and Mrs. D Clarke who, having was assigned a lease of a first floor flat in Ladywell in September 2000. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable flats in Ladywell with a long lease were valued around £270,000. The average ground rent payable was £55 invoiced annually. The lease came to a finish in 2099. Given that there were 75 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Ladywell premises 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.