Ladywell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Ladywell residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ladywell you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Ladywell with over one hundred years left 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Godiva Mortgages | 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. |
| 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 lawyer 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.
After protracted negotiations with the landlord of her ground floor flat in Ladywell, Jade commenced the lease extension process as the 80 year mark was quickly advancing. The transaction completed in March 2009. The freeholder’s costs were restricted to a tad over 650 GBP.
In 2010 we were approached by Mr and Mrs. H Bertrand who, having was assigned a lease of a garden flat in Ladywell in April 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Ladywell with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 billed annually. The lease expired on 7 May 2104. Having 78 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including 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 related to 2 flats. The number of years remaining on the existing lease(s) was 74.25 years.