Woodhouse and Handsworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Woodhouse and Handsworth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Woodhouse and Handsworth you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Woodhouse and Handsworth flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Woodhouse and Handsworth with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Woodhouse and Handsworth leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur owned a conversion apartment in Woodhouse and Handsworth on the market with a lease of fraction over sixty years unexpired. Arthur on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2010 we were called by Mr Max López who, having moved into a basement apartment in Woodhouse and Handsworth in June 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Woodhouse and Handsworth with an extended lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease came to a finish in 2077. Taking into account 51 years unexpired we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.
Last month we were e-mailed by Mrs Ellie Peterson , who moved into a one bedroom flat in Woodhouse and Handsworth in July 2000. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar residencies in Woodhouse and Handsworth with a long lease were worth £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expiry date was in 2088. Having 62 years unexpired we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.