Wythall leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Wythall tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Wythall you should investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Wythall leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold properties in Wythall with in excess of 100 years unexpired 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Wythall,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wythall valuers.
Last October Alex, came very close to the 80-year threshold with the lease on his basement apartment in Wythall. Having bought his property twenty years previously, the unexpired term was of no bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Alex extended the lease at the eleventh hour in April. Alex and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If the lease had gone lower than eighty years, the sum would have escalated by at least £950.
Mr Joshua Petit was assigned a lease of a newly refurbished flat in Wythall in July 2012. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Wythall with a long lease were valued about £205,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated in 2105. Considering the 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last Christmas we were phoned by Dr Grace Murphy , who took over the lease of a basement flat in Wythall in July 1995. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical premises in Wythall with a long lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease finished in 2094. Considering the 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.