When it comes to long leasehold property in Castle Bromwich, you are actually buying a right to reside in a property for a set 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 lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Castle Bromwich with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has below eighty years left, under the current statute the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Castle Bromwich with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | 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. |
| 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 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 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.
Caleb was the the leasehold proprietor of a 2 bedroom flat in Castle Bromwich being marketed with a lease of a few days over 72 years left. Caleb on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. M Alexander was assigned a lease of a purpose-built flat in Castle Bromwich in September 2009. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparative homes in Castle Bromwich with 100 year plus lease were valued about £275,000. The average ground rent payable was £65 billed quarterly. The lease elapsed on 24 June 2094. Taking into account 68 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Mr Benjamin Walker purchased a purpose-built apartment in Castle Bromwich in May 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical premises in Castle Bromwich with a long lease were worth £213,600. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 20 June 2083. Given that there were 57 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.