For those whose Woodhouse and Handsworth property is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Woodhouse and Handsworth with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Woodhouse and Handsworth can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Woodhouse and Handsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her studio apartment in Woodhouse and Handsworth, Mia started the lease extension process as the 80 year deadline was rapidly approaching. The legal work completed in January 2013. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. H Collins , who was assigned a lease of a newly refurbished apartment in Woodhouse and Handsworth in July 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Woodhouse and Handsworth with a long lease were valued around £285,000. The average amount of ground rent was £55 billed annually. The lease expired in 2106. Considering the 80 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
Ms H Allen moved into a one bedroom flat in Woodhouse and Handsworth in November 2008. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable properties in Woodhouse and Handsworth with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended on 15 October 2086. Considering the 60 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.