There is no doubt about it a leasehold flat or house in Castle Bromwich is a wasting asset as a result of the shortening lease. If the lease has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Castle Bromwich will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Castle Bromwich with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works |
Using our service will provide you enhanced control over the value of your Castle Bromwich leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Zachary, came dangerously close to the 80-year mark with the lease on his studio apartment in Castle Bromwich. Having purchased his property two decades ago, the length of the lease was of minimal relevance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Zachary extended the lease just under the wire in August. Zachary and the freeholder via the management company in the end settled on sum of £5,500 . If the lease had dropped lower than eighty years, the premium would have escalated by a minimum £1,100.
In 2014 we were phoned by Mr S Moore who, having acquired a basement apartment in Castle Bromwich in June 2001. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar homes in Castle Bromwich with 100 year plus lease were in the region of £213,600. The average amount of ground rent was £60 collected per annum. The lease finished on 10 February 2083. Considering the 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.
In 2012 we were contacted by Mr and Mrs. D Rose who, having purchased a newly refurbished apartment in Castle Bromwich in March 2012. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative premises in Castle Bromwich with a long lease were worth £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded in 2103. Taking into account 77 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.