Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Washwood Heath. Clearly, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Washwood Heath have the right to extend the lease for a further 90 years under statute. Please give careful attention before delaying your Washwood Heath lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Washwood Heath,the lease extension experts 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.
In recent months Milo, came precariously near to the 80-year mark with the lease on his two bedroom flat in Washwood Heath. Having purchased his property 19 years ago, the unexpired term was of minimal concern. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Milo arranged for a lease extension just in the nick of time last September. Milo and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had dipped lower than eighty years, the figure would have become more costly by at least £925.
Ms L Ward acquired a studio flat in Washwood Heath in August 2008. The question was if we could approximate the price could be to extend the lease by an additional years. Identical premises in Washwood Heath with a long lease were in the region of £210,000. The average ground rent payable was £50 billed per annum. The lease terminated on 15 May 2106. Having 80 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Christmas we were called by Mr Lewis Sánchez , who bought a purpose-built apartment in Washwood Heath in January 2007. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Washwood Heath with a long lease were worth £275,000. The average amount of ground rent was £45 collected annually. The lease finished on 5 May 2095. Given that there were 69 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.