The market value of Ladywood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than 80 years
Leasehold residencies in Ladywood with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Ladywood leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Eli, came very near to the 80-year threshold with the lease on his ground floor apartment in Ladywood. Having bought his home two decades ago, the length of the lease was of little concern. Luckily, he realised he needed to take steps soon on Extending the lease. Eli extended the lease at the eleventh hour last March. Eli and the freeholder eventually agreed on an amount of £5,000 . If the lease had dropped lower than 80 years, the figure would have gone up by at least £1,125.
Last April we were e-mailed by Mr Y André , who bought a recently refurbished flat in Ladywood in March 2006. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable residencies in Ladywood with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 4 June 2101. Having 76 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were e-mailed by Mr and Mrs. G Robinson who, having bought a one bedroom flat in Ladywood in July 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar properties in Ladywood with a long lease were valued about £176,200. The average amount of ground rent was £65 invoiced per annum. The lease concluded in 2081. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of costs.