The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in West Smithfield can extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your West Smithfield lease extension. Putting off that expense today simply escalates the premium you will ultimately have to pay to extend the lease.
Leasehold properties in West Smithfield with over one hundred 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your West Smithfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her purpose-built apartment in West Smithfield, Sian started the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension completed in April 2006. The landlord’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mrs Gemma Flores , who acquired a purpose-built apartment in West Smithfield in October 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in West Smithfield with a long lease were valued about £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease ran out in 2076. Taking into account 51 years outstanding we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
An example of a Lease Extension decision for a West Smithfield property is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case related to 1 flat. The unexpired term as at the valuation date was 66.8 years.