Chances are that 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 remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Washwood Heath leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Samuel was the the leasehold proprietor of a high value flat in Washwood Heath on the market with a lease of a little over fifty eight years left. Samuel on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Mr Rory Leroy purchased a purpose-built apartment in Washwood Heath in July 2007. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Washwood Heath with a long lease were worth £174,200. The mid-range ground rent payable was £55 billed per annum. The lease lapsed in 2076. Taking into account 51 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
Last Spring we were phoned by Mr and Mrs. I Alexander , who moved into a one bedroom flat in Washwood Heath in October 2000. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Washwood Heath with a long lease were worth £285,000. The average ground rent payable was £45 billed yearly. The lease elapsed on 4 June 2096. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.