Chances are that if you own a flat in Ladywood you actually own a long leasehold interest over your property
Leasehold premises in Ladywood with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ladywood can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
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 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 the wake of 6 months of protracted correspondence with the landlord of her first floor flat in Ladywood, Shannon started the lease extension process just as her lease was nearing the all-important 80-year mark. The transaction completed in March 2008. The freeholder’s costs were negotiated to below six hundred pounds.
Last Spring we were called by Mr Y Howard , who moved into a one bedroom flat in Ladywood in October 1995. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar homes in Ladywood with 100 year plus lease were valued around £191,000. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 8 October 2082. Considering the 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of costs.
In 2014 we were contacted by Mr E Kelly who, having owned a garden flat in Ladywood in April 1996. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Ladywood with a long lease were worth £250,000. The average amount of ground rent was £50 billed per annum. The lease elapsed in 2093. Taking into account 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.