Ladywood residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Ladywood with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in Ladywood can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Ladywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Alfie, came seriously close to the eighty-year threshold with the lease on his studio apartment in Ladywood. Having bought his home two decades ago, the unexpired term was of no bearing. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Alfie extended the lease at the eleventh hour last August. Alfie and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If the lease had slipped lower than eighty years, the amount would have escalated by at least £1,000.
Dr Grace Sharif acquired a first floor apartment in Ladywood in May 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical flats in Ladywood with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2097. Having 72 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last Christmas we were called by Mr and Mrs. V Clark , who was assigned a lease of a basement apartment in Ladywood in May 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Ladywood with an extended lease were valued around £256,600. The average ground rent payable was £60 billed every twelve months. The lease came to a finish on 12 June 2077. Taking into account 52 years left we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of professional charges.