The re-sale value of a leasehold property in Washwood Heath is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded well before the eighty year threshold. Current legislation enables Washwood Heath qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Washwood Heath with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Washwood Heath can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 dealing with 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.
During the course of the last few months Ryan, came seriously close to the 80-year threshold with the lease on his first floor apartment in Washwood Heath. In buying his property twenty years previously, the length of the lease was of little bearing. As luck would have it, he noticed he needed to take action soon on a lease extension. Ryan arranged for a lease extension just under the wire in April. Ryan and the freeholder via the managing agents subsequently settled on sum of £5,000 . If the lease had dropped to less than eighty years, the sum would have become more exhorbitant by a minimum £1,050.
Last month we were e-mailed by Mr and Mrs. S Rogers , who took over the lease of a one bedroom flat in Washwood Heath in January 2006. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative homes in Washwood Heath with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded in 2076. Given that there were 50 years outstanding we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus expenses.
Ms O Morgan bought a garden flat in Washwood Heath in July 1996. We are asked if we could approximate the price would be for a ninety year lease extension. Similar homes in Washwood Heath with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 collected quarterly. The lease terminated on 7 November 2096. Given that there were 70 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.