Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Wythall. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Wythall have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give due attention before putting off your Wythall lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wythall can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring Wythall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie owned a high value flat in Wythall being sold with a lease of a few days over 59 years remaining. Jamie on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2009 we were approached by Ms Naomi Lefèvre who, having took over the lease of a first floor flat in Wythall in May 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Wythall with a long lease were worth £295,000. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2099. Considering the 74 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
In 2012 we were approached by Mr Jude Miller who, having bought a one bedroom apartment in Wythall in June 2001. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Wythall with 100 year plus lease were valued about £243,000. The mid-range ground rent payable was £65 collected monthly. The lease expired on 25 September 2088. Considering the 63 years left we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.