Castle Bromwich leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Castle Bromwich will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Castle Bromwich with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
The conveyancers that we work with handle Castle Bromwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Lewis owned a studio apartment in Castle Bromwich on the market with a lease of a little over 72 years unexpired. Lewis informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to exercise his statutory right. Lewis obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Ms I Mitchell took over the lease of a one bedroom flat in Castle Bromwich in February 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Castle Bromwich with an extended lease were worth £285,000. The average ground rent payable was £45 invoiced yearly. The lease ended on 20 April 2097. Having 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Dr M Collins purchased a garden apartment in Castle Bromwich in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Castle Bromwich with a long lease were in the region of £230,800. The average ground rent payable was £60 collected annually. The lease lapsed on 8 April 2086. Taking into account 60 years unexpired we calculated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 plus fees.