Chances are that if you own a flat in Locks Heath you actually own a long leasehold interest over your property
Leasehold properties in Locks Heath with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Locks Heath leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Stanley, came critically near to the eighty-year mark with the lease on his ground floor apartment in Locks Heath. Having bought his home 19 years ago, the length of the lease was of no interest. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Stanley was able to extend his lease just under the wire last June. Stanley and the freeholder via the management company ultimately agreed on an amount of £5,000 . If the lease had descended below eighty years, the sum would have increased by a minimum £975.
Last Spring we were called by Ms Victoria Nguyen , who moved into a ground floor apartment in Locks Heath in May 2007. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable flats in Locks Heath with a long lease were worth £275,000. The mid-range ground rent payable was £65 billed per annum. The lease finished in 2093. Given that there were 68 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Last Winter we were contacted by Dr P Davis , who completed a garden apartment in Locks Heath in March 2001. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Locks Heath with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease concluded on 4 May 2082. Having 57 years left we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including professional charges.