The re-sale value of a leasehold property in Ladywell is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year threshold. Leasehold Reform legislation enables Ladywell qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty 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 amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
Lease extensions in Ladywell can be a difficult process. We recommend you obtain professional help from a conveyancer 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 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 the wake of 6 months of lengthy negotiations with the landlord of her ground floor apartment in Ladywell, Chloe initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The legal work was concluded in July 2009. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were phoned by Mr Toby Morel who, having owned a basement flat in Ladywell in September 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar flats in Ladywell with a long lease were worth £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease lapsed on 24 January 2091. Given that there were 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement decision for a Ladywell residence 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 remaining number of years on the lease was 74.25 years.