With a domestic leasehold property in Washwood Heath, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Anyone in Washwood Heath with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has below 80 years left, under the current Act the freeholder can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Washwood Heath with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Washwood Heath leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her garden apartment in Washwood Heath, Laura started the lease extension process as the 80 year deadline was fast nearing. The transaction was concluded in August 2007. The freeholder’s charges were restricted to below 500 pounds.
In 2013 we were phoned by Dr Dylan González who, having bought a garden flat in Washwood Heath in February 2008. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative flats in Washwood Heath with an extended lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced yearly. The lease expiry date was on 3 June 2080. Considering the 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including expenses.
In 2012 we were approached by Mrs P Gray who, having bought a recently refurbished flat in Washwood Heath in August 2001. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in Washwood Heath with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed monthly. The lease expired in 2100. Taking into account 74 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.