On the balance of probabilities if you own a flat in Castle Bromwich you actually own a long leasehold interest over your property
Leasehold properties in Castle Bromwich with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service gives you enhanced control over the value of your Castle Bromwich leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her garden apartment in Castle Bromwich, Freya started the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension was finalised in April 2011. The landlord’s costs were kept to an absolute minimum.
Mr George Cooper owned a ground floor apartment in Castle Bromwich in May 2008. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Castle Bromwich with 100 year plus lease were worth £223,400. The average ground rent payable was £60 billed per annum. The lease elapsed in 2084. Having 59 years outstanding we approximated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of expenses.
Mrs Ella Morel bought a ground floor apartment in Castle Bromwich in February 2005. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable flats in Castle Bromwich with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed in 2104. Given that there were 79 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.