On the balance of probabilities where you own a flat in Washwood Heath you actually own a long leasehold interest over your property
Leasehold residencies in Washwood Heath with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Washwood Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a 2 bedroom flat in Washwood Heath on the market with a lease of just over sixty years left. Omar informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mr S Baker who, having bought a purpose-built flat in Washwood Heath in August 1996. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative properties in Washwood Heath with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease finished in 2095. Given that there were 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2010 we were contacted by Mr E Pérez who, having completed a ground floor flat in Washwood Heath in May 2002. We are asked if we could estimate the price would be to extend the lease by ninety years. Similar premises in Washwood Heath with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2084. Considering the 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.