With a domestic leasehold property in Castle Bromwich, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider 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 notably when there are less than 80 years remaining. Leasehold owners in Castle Bromwich with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has under 80 years remaining, under the current statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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.
Subsequent to lengthy correspondence with the landlord of her one bedroom apartment in Castle Bromwich, Kayleigh started the lease extension process as the 80 year threshold was quickly advancing. The lease extension was finalised in January 2013. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mr George Morel , who purchased a one bedroom apartment in Castle Bromwich in January 1999. We are asked if we could estimate the price would be for a 90 year lease extension. Identical properties in Castle Bromwich with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated on 9 September 2105. Having 79 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. M Sánchez was assigned a lease of a studio apartment in Castle Bromwich in August 1995. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Castle Bromwich with a long lease were worth £275,000. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed on 27 June 2094. Considering the 68 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.