With a domestic leasehold property in Castle Bromwich, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years remaining. Anyone in Castle Bromwich with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Castle Bromwich with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Castle Bromwich can be a difficult process. We recommend you procure guidance from a conveyancer 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 dealing with Castle Bromwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Alfie, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Castle Bromwich. Having bought his flat 18 years ago, the length of the lease was of no interest. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Alfie extended the lease at the eleventh hour in May. Alfie and the landlord ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the price would have increased by a minimum £1,000.
In 2013 we were phoned by Mr and Mrs. L Watson who, having completed a recently refurbished flat in Castle Bromwich in May 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative premises in Castle Bromwich with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed annually. The lease came to a finish on 25 November 2094. Taking into account 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
Last Autumn we were called by Dr S Clarke , who was assigned a lease of a ground floor apartment in Castle Bromwich in September 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Castle Bromwich with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 19 March 2083. Given that there were 58 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.