Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Redditch. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Redditch have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Redditch lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with procure Redditch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Finley, started to get near to the 80-year mark with the lease on his garden flat in Redditch. In buying his flat two decades ago, the unexpired term was of no importance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Finley was able to extend his lease at the eleventh hour last July. Finley and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,000.
Last August we were contacted by Dr W Norbert , who bought a garden apartment in Redditch in September 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Redditch with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 collected monthly. The lease expiry date was in 2105. Given that there were 80 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last Winter we were approach by Mrs Yasmin Mitchell , who took over the lease of a basement flat in Redditch in January 2006. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Similar residencies in Redditch with an extended lease were valued around £275,000. The average amount of ground rent was £45 collected yearly. The lease lapsed on 21 January 2094. Having 69 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.