For those whose Castle Bromwich flat is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Castle Bromwich can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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.
Harvey was the the leasehold proprietor of a high value flat in Castle Bromwich on the market with a lease of a little over sixty years outstanding. Harvey on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
In 2010 we were approached by Mr and Mrs. A Adams who, having took over the lease of a one bedroom apartment in Castle Bromwich in June 2001. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable flats in Castle Bromwich with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed on 6 April 2095. Considering the 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
Mr Jamie Allen owned a one bedroom apartment in Castle Bromwich in May 2010. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparative flats in Castle Bromwich with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 28 January 2084. Considering the 58 years left we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.