Unfortunately that a Washwood Heath residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Washwood Heath property market.Once your lease nears 85ish years, you need to 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 below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Washwood Heath will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Washwood Heath,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Washwood Heath valuers.
Finn was the the leasehold proprietor of a 2 bedroom apartment in Washwood Heath on the market with a lease of a little over 72 years unexpired. Finn informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were called by Mr and Mrs. W Taylor , who bought a studio flat in Washwood Heath in October 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Washwood Heath with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 billed every twelve months. The lease expired on 3 February 2084. Having 59 years remaining we estimated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus fees.
In 2014 we were contacted by Mr and Mrs. O Ali who, having was assigned a lease of a studio apartment in Washwood Heath in October 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable residencies in Washwood Heath with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished on 14 January 2104. Given that there were 79 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.