Washwood Heath leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease drops lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Washwood Heath will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Washwood Heath with over one hundred years outstanding 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 property. In such circumstances there is often little to be gained by buying the freehold 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service will provide you increased control over the value of your Washwood Heath leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Kian, started to get near to the 80-year mark with the lease on his studio flat in Washwood Heath. In buying his flat two decades ago, the length of the lease was of minimal importance. Thankfully, he realised he needed to take action soon on Extending the lease. Kian was able to extend his lease just ahead of time in March. Kian and the freeholder in the end agreed on an amount of £5,000 . If the lease had dipped lower than 80 years, the amount would have escalated by at least £1,100.
In 2014 we were e-mailed by Mrs U Alexander who, having was assigned a lease of a ground floor apartment in Washwood Heath in June 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Washwood Heath with an extended lease were in the region of £285,000. The average amount of ground rent was £45 collected quarterly. The lease ended on 5 June 2097. Having 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
In 2009 we were phoned by Ms Hannah Scott who, having acquired a purpose-built flat in Washwood Heath in January 2008. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Washwood Heath with a long lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed on 7 May 2086. Given that there were 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus professional charges.