Leeswood 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 Leeswood tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Leeswood you would be well advised to check if your lease has between seventy and 90 years left. There are compelling reasons why a Leeswood flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Leeswood with more than 100 years unexpired 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Leeswood,the lease extension lawyers 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 Leeswood valuers.
Finley was the the leasehold proprietor of a studio apartment in Leeswood on the market with a lease of a few days over fifty eight years remaining. Finley informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last September we were e-mailed by Mr E Sánchez , who took over the lease of a garden flat in Leeswood in April 2012. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Leeswood with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 collected quarterly. The lease terminated on 3 July 2091. Having 66 years remaining we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of fees.
In 2012 we were e-mailed by Dr P Laurent who, having was assigned a lease of a one bedroom flat in Leeswood in August 1995. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Leeswood with an extended lease were worth £198,800. The average ground rent payable was £55 collected quarterly. The lease elapsed on 27 November 2080. Having 55 years left we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including fees.