For those whose Lapworth home is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold premises in Lapworth with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Lapworth can be a difficult process. We recommend you secure professional help 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 procuring Lapworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Mason, started to get near to the eighty-year threshold with the lease on his basement apartment in Lapworth. In buying his flat 19 years ago, the length of the lease was of minimal relevance. Luckily, it dawned on him that he would soon be paying way over the odds for Extending the lease. Mason was able to extend his lease just under the wire in April. Mason and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If the lease had fallen to less than eighty years, the price would have gone up by at least £950.
Last February we were contacted by Mr and Mrs. J Norbert , who completed a ground floor flat in Lapworth in August 1995. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Lapworth with a long lease were worth £255,000. The average amount of ground rent was £50 collected monthly. The lease ended on 27 June 2097. Considering the 71 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last Winter we were e-mailed by Ms P Mitchell , who bought a basement flat in Lapworth in October 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical residencies in Lapworth with a long lease were worth £254,200. The average amount of ground rent was £60 collected yearly. The lease concluded on 8 August 2077. Having 51 years outstanding we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including fees.