Underwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Underwood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Underwood you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Underwood flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Underwood with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Underwood 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.
Jacob was the the leasehold owner of a high value flat in Underwood on the market with a lease of a little over fifty eight years outstanding. Jacob on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mr N Bennett completed a purpose-built apartment in Underwood in January 2003. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable premises in Underwood with a long lease were valued about £186,000. The mid-range ground rent payable was £65 collected annually. The lease concluded in 2084. Having 58 years remaining we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 not including legals.
Last year we were phoned by Mrs Megan Richardson , who bought a garden flat in Underwood in June 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar premises in Underwood with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 16 March 2095. Given that there were 69 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.