The re-sale value of a leasehold property in Willenhall depends on how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year cut off point. Statute entitles Willenhall qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Willenhall with over one hundred years left on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Willenhall,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Willenhall valuers.
After lengthy negotiations with the freeholder of her basement flat in Willenhall, Emma started the lease extension process as the eighty year deadline was swiftly coming. The legal work was finalised in July 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were contacted by Mr G Edwards who, having took over the lease of a garden flat in Willenhall in August 1996. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparable homes in Willenhall with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed in 2087. Considering the 62 years remaining we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.
Mrs O Khan bought a one bedroom flat in Willenhall in November 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Willenhall with a long lease were valued around £265,000. The average ground rent payable was £50 invoiced quarterly. The lease concluded on 26 June 2098. Considering the 73 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.