There is no doubt about it a leasehold flat or house in Wythall is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Wythall will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Wythall with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wythall can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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.
Off the back of lengthy correspondence with the landlord of her studio flat in Wythall, Sophia started the lease extension process as the 80 year mark was fast nearing. The legal work completed in July 2005. The landlord’s charges were restricted to about 650 GBP.
Mr and Mrs. U Phillips bought a garden apartment in Wythall in August 2006. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical premises in Wythall with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed on 6 August 2091. Having 65 years as a residual term we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
In 2011 we were contacted by Dr S Taylor who, having completed a basement apartment in Wythall in August 2005. The question was if we could approximate the price could be to prolong the lease by an additional years. Identical homes in Wythall with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected monthly. The lease ended in 2080. Considering the 54 years remaining we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus costs.