On the balance of probabilities where you own a flat in Washwood Heath you actually own a long leasehold interest over your property
Leasehold properties in Washwood Heath with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Washwood Heath can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 dealing with 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.
In recent months Ben, came critically near to the 80-year mark with the lease on his one bedroom flat in Washwood Heath. In buying his flat 18 years previously, the length of the lease was of little significance. by good luck, he realised he needed to take action soon on Extending the lease. Ben was able to extend his lease just under the wire last January. Ben and the freeholder via the management company in the end agreed on the final figure of £5,500 . If the lease had gone lower than 80 years, the figure would have increased by at least £1,000.
Last Winter we were phoned by Mr and Mrs. Y Moore , who acquired a ground floor flat in Washwood Heath in April 2006. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Washwood Heath with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 collected monthly. The lease ran out in 2098. Considering the 72 years left we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Summer we were approach by Dr Freddie Garcia , who purchased a garden apartment in Washwood Heath in August 1997. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Similar flats in Washwood Heath with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease termination date was in 2087. Given that there were 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus expenses.