Washwood Heath leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Washwood Heath residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Washwood Heath you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Washwood Heath flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Washwood Heath with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Washwood Heath can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience procuring Washwood Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Aarav, came perilously near to the eighty-year mark with the lease on his first floor flat in Washwood Heath. Having bought his property 18 years ago, the length of the lease was of little relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Aarav was able to extend his lease at the eleventh hour last July. Aarav and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £875.
Mrs Phoebe Parker acquired a one bedroom apartment in Washwood Heath in April 1998. The question was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Identical premises in Washwood Heath with a long lease were valued around £181,600. The average amount of ground rent was £55 collected yearly. The lease ended in 2078. Having 52 years left we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
In 2013 we were phoned by Mr and Mrs. K Lewis who, having bought a studio apartment in Washwood Heath in July 2006. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical properties in Washwood Heath with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed monthly. The lease lapsed on 19 October 2098. Considering the 72 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.