Rednal leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher premium will be payable. Flat owners in Rednal will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Rednal with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Rednal lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the landlord of her basement apartment in Rednal, Yasmin commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was concluded in September 2009. The landlord’s costs were restricted to approximately six hundred pounds.
Last Summer we were e-mailed by Dr Seth Johnson , who moved into a garden apartment in Rednal in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Rednal with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease ended in 2100. Having 75 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last year we were contacted by Dr Seth Vincent , who bought a garden flat in Rednal in August 2008. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar homes in Rednal with an extended lease were in the region of £250,400. The average amount of ground rent was £65 collected monthly. The lease concluded on 23 May 2089. Given that there were 64 years as a residual term we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.