Washwood Heath residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Washwood Heath can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Washwood Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Nathaniel, came perilously close to the eighty-year threshold with the lease on his garden apartment in Washwood Heath. In buying his home two decades ago, the lease term was of minimal bearing. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Nathaniel extended the lease just in the nick of time in September. Nathaniel and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If he not met the deadline, the price would have gone up by at least £950.
Last March we were phoned by Mr and Mrs. U Wood , who took over the lease of a basement apartment in Washwood Heath in April 2004. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Washwood Heath with a long lease were valued around £205,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2105. Given that there were 79 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Ms Niamh Parker bought a ground floor flat in Washwood Heath in January 2001. The question was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Washwood Heath with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 billed yearly. The lease elapsed in 2094. Taking into account 68 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.