Main reasons to start your Washwood Heath lease extension
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Main reasons to commence your Washwood Heath lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/washwood-heath">Washwood Heath</a> property value </h4>
<p> Unfortunately that a Washwood Heath residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Washwood Heath property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. Most flat owners in Washwood Heath will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
<h4>Washwood Heath property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
<h4>Lenders will not finance a property with a short lease</h4> Lending institutions have specific criteria when lending monies secured on leasehold property. Many will simply refuse lend at all once an unexpired lease term goes beneath a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years suitable security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Washwood Heath home.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Coventry Building Society</td>
<td> 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.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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What makes us experts in Washwood Heath lease extensions?
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The lawyers that we work with procure Washwood Heath 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.
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Washwood Heath Lease Extension Example Cases:
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<h5> Joshua, Washwood Heath, Birmingham,</h5>
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Joshua was the the leasehold proprietor of a studio apartment in Washwood Heath on the market with a lease of just over 61 years left. Joshua informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
<h5>Washwood Heath case:</h5>
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In 2013 we were e-mailed by Dr Sebastian Morris who, having acquired a newly refurbished apartment in Washwood Heath in February 2012. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Washwood Heath with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired in 2101. Having 75 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
<h5>Washwood Heath case:</h5>
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Last Winter we were approach by Mr and Mrs. J Morel , who
bought a recently refurbished flat in Washwood Heath in January 1996. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Washwood Heath with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected quarterly. The lease expired on 23 June 2090. Taking into account 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
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