Wednesbury leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Wednesbury residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wednesbury you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Wednesbury leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Wednesbury with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Wednesbury can be a difficult process. We recommend you get guidance from a lawyer 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 a wealth of experience procuring Wednesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the landlord of her first floor apartment in Wednesbury, Megan initiated the lease extension process as the 80 year mark was quickly approaching. The transaction was finalised in November 2013. The landlord’s charges were kept to an absolute minimum.
Last August we were called by Mrs Madeleine Garcia , who completed a studio flat in Wednesbury in August 1999. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical homes in Wednesbury with a long lease were valued around £250,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 11 September 2094. Considering the 68 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2014 we were approached by Dr Evan Harris who, having took over the lease of a garden flat in Wednesbury in October 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Wednesbury with an extended lease were valued around £285,000. The average ground rent payable was £55 billed monthly. The lease expired in 2105. Taking into account 79 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.