For those whose Rednal flat is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Rednal with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Rednal leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Mason, started to get close to the 80-year mark with the lease on his purpose- built flat in Rednal. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Mason was able to extend his lease at the eleventh hour in January. Mason and the landlord in the end agreed on an amount of £5,500 . If the lease had dipped below 80 years, the figure would have become more exhorbitant by at least £1,025.
Mrs F Davis acquired a first floor flat in Rednal in May 1997. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical flats in Rednal with an extended lease were valued around £201,200. The average amount of ground rent was £55 invoiced monthly. The lease lapsed in 2081. Considering the 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
In 2009 we were contacted by Dr U François who, having took over the lease of a ground floor apartment in Rednal in January 2006. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Rednal with a long lease were worth £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated in 2101. Considering the 76 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.