Castle Bromwich leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be payable. Flat owners in Castle Bromwich will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you enhanced control over the value of your Castle Bromwich leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her purpose-built apartment in Castle Bromwich, Lauren started the lease extension process as the eighty year threshold was quickly nearing. The legal work was finalised in February 2013. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were phoned by Dr Finley Hall , who bought a studio flat in Castle Bromwich in May 2002. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in Castle Bromwich with a long lease were valued about £295,000. The average ground rent payable was £45 billed quarterly. The lease ended in 2099. Taking into account 74 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
Last Christmas we were e-mailed by Mr and Mrs. O Lambert , who took over the lease of a first floor apartment in Castle Bromwich in January 2001. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable residencies in Castle Bromwich with 100 year plus lease were valued about £248,000. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2088. Considering the 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of expenses.