Wythall leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Wythall will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Wythall 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.
Alexander was the the leasehold proprietor of a high value flat in Wythall on the market with a lease of fraction over fifty eight years remaining. Alexander informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last Summer we were contacted by Mr and Mrs. J Girard , who took over the lease of a one bedroom flat in Wythall in January 2008. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Wythall with an extended lease were valued around £225,800. The average amount of ground rent was £60 billed quarterly. The lease finished in 2086. Considering the 60 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of costs.
Dr A Díaz was assigned a lease of a garden apartment in Wythall in April 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Wythall with a long lease were valued about £210,000. The average amount of ground rent was £50 collected every twelve months. The lease finished on 9 April 2106. Given that there were 80 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.