Castle Bromwich leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Castle Bromwich residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Castle Bromwich you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Castle Bromwich leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her two bedroom flat in Castle Bromwich, Emily commenced the lease extension process as the eighty year threshold was swiftly nearing. The legal work was finalised in May 2010. The landlord’s charges were kept to an absolute minimum.
In 2010 we were called by Dr Lydia Fournier who, having acquired a garden flat in Castle Bromwich in January 2008. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparable properties in Castle Bromwich with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 billed per annum. The lease expired on 22 February 2101. Having 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Mr and Mrs. O González purchased a one bedroom flat in Castle Bromwich in March 1997. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Castle Bromwich with a long lease were worth £260,200. The average amount of ground rent was £65 collected yearly. The lease came to a finish on 7 April 2090. Given that there were 66 years outstanding we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.