As the the remaining lease term of a Washwood Heath domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Many flat owners in Washwood Heath will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Washwood Heath with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Washwood Heath,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Washwood Heath valuers.
Subsequent to protracted discussions with the freeholder of her purpose-built flat in Washwood Heath, Alicia initiated the lease extension process as the 80 year mark was rapidly nearing. The transaction completed in April 2012. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were phoned by Mr and Mrs. D Allen who, having owned a one bedroom flat in Washwood Heath in April 1999. We are asked if we could approximate the price could be for a ninety year lease extension. Similar properties in Washwood Heath with an extended lease were in the region of £206,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired in 2082. Taking into account 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
Ms Chloe Rivera was assigned a lease of a studio apartment in Washwood Heath in March 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Washwood Heath with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2102. Considering the 76 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.