The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Locks Heath may extend the lease for an additional ninety years in accordance with statute. Please give careful consideration before delaying your Locks Heath lease extension. Postponing that expense now simply escalates the premium you will ultimately have to pay to extend the lease.
Leasehold residencies in Locks Heath with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Locks Heath can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 Locks Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam owned a studio flat in Locks Heath on the market with a lease of a little over fifty eight years unexpired. Sam on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Dr L Morris owned a basement flat in Locks Heath in November 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Locks Heath with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed annually. The lease terminated on 8 March 2099. Having 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
Last February we were e-mailed by Mr and Mrs. Y Khan , who was assigned a lease of a recently refurbished flat in Locks Heath in January 1995. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical homes in Locks Heath with 100 year plus lease were in the region of £240,600. The mid-range amount of ground rent was £65 billed yearly. The lease lapsed in 2088. Taking into account 62 years unexpired we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.