Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ladywell. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Ladywell have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give due deliberation before delaying your Ladywell lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Ladywell with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 secure professional help 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.
Milo owned a conversion flat in Ladywell being sold with a lease of just over 59 years remaining. Milo on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Mr J David moved into a one bedroom flat in Ladywell in February 2004. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Ladywell with an extended lease were valued around £264,000. The average amount of ground rent was £60 invoiced monthly. The lease ran out in 2079. Having 53 years as a residual term we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Ladywell property 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 remaining number of years on the lease was 74.25 years.