The market value of a leasehold property in Ladywood depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be finalised ahead of the 80 year mark. Leasehold Reform legislation entitles Ladywood qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Ladywood can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Ladywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Teddy, started to get close to the eighty-year threshold with the lease on his basement apartment in Ladywood. Having purchased his flat two decades ago, the unexpired term was of no significance. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Teddy was able to extend his lease just in the nick of time in August. Teddy and the landlord who owned the flat above in the end settled on a premium of £5,500 . If he not met the deadline, the amount would have escalated by at least £975.
In 2010 we were e-mailed by Dr Edward Bennett who, having owned a first floor flat in Ladywood in September 1995. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Ladywood with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease ended on 19 May 2097. Taking into account 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last year we were phoned by Dr A Baker , who purchased a purpose-built flat in Ladywood in October 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Similar properties in Ladywood with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 collected yearly. The lease concluded in 2077. Having 51 years outstanding we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.