Washwood Heath leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher amount will be due. Leasehold owners in Washwood Heath will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Washwood Heath leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Tommy, came precariously close to the 80-year mark with the lease on his basement flat in Washwood Heath. In buying his home twenty years previously, the length of the lease was of little interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Tommy was able to extend his lease just in the nick of time in April. Tommy and the freeholder via the managing agents eventually agreed on an amount of £5,000 . If he not met the deadline, the sum would have increased by a minimum £1,025.
Last Spring we were phoned by Mr and Mrs. B Smith , who moved into a purpose-built flat in Washwood Heath in July 2011. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable properties in Washwood Heath with a long lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 18 October 2092. Considering the 67 years left we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of costs.
Last Winter we were contacted by Dr Y Davis , who bought a newly refurbished flat in Washwood Heath in May 2003. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar homes in Washwood Heath with a long lease were in the region of £206,200. The average ground rent payable was £55 collected annually. The lease expired on 28 October 2081. Taking into account 56 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.