Washwood Heath leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Washwood Heath tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Washwood Heath you should investigate if your lease has between 70 and ninety years left. There are good reasons why a Washwood Heath leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Washwood Heath with more than 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
14 months ago Jasper, came seriously near to the 80-year mark with the lease on his garden apartment in Washwood Heath. In buying his flat two decades ago, the unexpired term was of no significance. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Jasper arranged for a lease extension just in the nick of time last May. Jasper and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £875.
Dr Emily Miller took over the lease of a newly refurbished apartment in Washwood Heath in July 2002. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical premises in Washwood Heath with an extended lease were worth £275,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished on 9 September 2095. Given that there were 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
Ms Millie Khan was assigned a lease of a garden apartment in Washwood Heath in June 1998. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Identical flats in Washwood Heath with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 14 January 2084. Considering the 58 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.