With a residential leasehold property in Castle Bromwich, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Castle Bromwich with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has below eighty years remaining, under the current statute the landlord can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Castle Bromwich can be a difficult process. We recommend you secure guidance 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 a wealth of experience 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.
In the wake of eight months of protracted negotiations with the landlord of her leasehold apartment in Castle Bromwich, Olivia commenced the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was finalised in October 2009. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were called by Mr Aiden Clark , who purchased a studio apartment in Castle Bromwich in February 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Castle Bromwich with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 invoiced annually. The lease terminated on 25 February 2076. Having 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus expenses.
Dr Isabelle Allen acquired a purpose-built flat in Castle Bromwich in March 2008. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative properties in Castle Bromwich with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease ended on 17 February 2096. Given that there were 70 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.