Wythall leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result 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 really ought to see if your lease has between seventy and ninety years remaining. There are good reasons why a Wythall flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Wythall with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Godiva Mortgages | 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. |
| Yorkshire 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. |
Lease extensions in Wythall can be a difficult process. We recommend you secure guidance from a lawyer 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 Wythall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Luca, started to get close to the 80-year threshold with the lease on his leasehold flat in Wythall. Having purchased his flat twenty years ago, the unexpired term was of minimal relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Luca was able to extend his lease just in the nick of time last April. Luca and the freeholder via the managing agents ultimately settled on an amount of £6,000 . If the lease had dropped to less than eighty years, the price would have increased by a minimum £900.
In 2014 we were e-mailed by Mr Mason Walker who, having purchased a newly refurbished apartment in Wythall in July 2005. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Wythall with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed yearly. The lease lapsed in 2093. Given that there were 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of fees.
Last April we were e-mailed by Dr H Richardson , who acquired a basement apartment in Wythall in June 1997. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable properties in Wythall with a long lease were worth £206,200. The average ground rent payable was £60 collected annually. The lease end date was on 16 February 2082. Given that there were 56 years outstanding we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.