The re-sale value of a leasehold property in Ladywell is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised well before the 80 year mark. Leasehold Reform legislation entitles Ladywell qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Ladywell with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service will provide you enhanced control over the value of your Ladywell leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her one bedroom apartment in Ladywell, Laura initiated the lease extension process as the eighty year deadline was quickly advancing. The transaction was concluded in June 2007. The freeholder’s charges were restricted to about 700 GBP.
Last Christmas we were e-mailed by Mr Reuben Wright , who moved into a purpose-built apartment in Ladywell in January 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar premises in Ladywell with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed yearly. The lease ran out on 8 October 2078. Considering the 52 years remaining we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 affected 2 flats. The number of years remaining on the existing lease(s) was 74.25 years.