Slade Green residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold premises in Slade Green with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Slade Green can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 Slade Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Hugo, started to get near to the 80-year threshold with the lease on his basement apartment in Slade Green. In buying his property 19 years previously, the lease term was of minimal bearing. Luckily, he recognised he needed to take action soon on a lease extension. Hugo arranged for a lease extension at the eleventh hour in April. Hugo and the freeholder in the end agreed on a premium of £5,500 . If the lease had slid below 80 years, the amount would have increased by a minimum £1,000.
In 2014 we were called by Mr and Mrs. C Davis who, having purchased a one bedroom apartment in Slade Green in March 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Slade Green with an extended lease were valued about £267,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated in 2093. Taking into account 67 years left we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of expenses.
An example of a Lease Extension case for a Slade Green premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired term as at the valuation date was 76 years.