Ladywood 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 your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ladywood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ladywood you must see if your lease has between seventy and ninety years left. There are good reasons why a Ladywood flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Ladywood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Kyle owned a high value apartment in Ladywood on the market with a lease of a little over 72 years remaining. Kyle informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. F Moore moved into a garden flat in Ladywood in January 2000. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Ladywood with a long lease were worth £200,800. The average ground rent payable was £65 collected quarterly. The lease terminated in 2086. Taking into account 60 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.
Mr H Roberts owned a studio flat in Ladywood in November 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical homes in Ladywood with a long lease were valued around £255,000. The average amount of ground rent was £50 collected monthly. The lease ended on 7 November 2097. Considering the 71 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.