It’s an underpublicised truth that a Washwood Heath residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Washwood Heath property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Washwood Heath will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Skipton Building Society |
Regardless of whether you are a tenant or a freeholder in Washwood Heath,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Washwood Heath valuers.
Callum owned a conversion apartment in Washwood Heath on the market with a lease of a little over fifty eight years unexpired. Callum informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Dr U Rivera purchased a purpose-built apartment in Washwood Heath in August 2011. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical properties in Washwood Heath with an extended lease were worth £233,200. The average amount of ground rent was £60 collected quarterly. The lease came to a finish in 2087. Given that there were 61 years outstanding we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of costs.
Mr and Mrs. Y Díaz purchased a first floor apartment in Washwood Heath in September 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Washwood Heath with an extended lease were valued about £171,800. The average amount of ground rent was £55 collected per annum. The lease finished on 20 January 2076. Considering the 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including fees.