It’s an underpublicised certainty that a Little Bromwich residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Little Bromwich property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Little Bromwich will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Little Bromwich with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Little Bromwich,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Bromwich valuers.
Following lengthy discussions with the landlord of her two bedroom apartment in Little Bromwich, Rachael commenced the lease extension process as the eighty year mark was quickly nearing. The lease extension completed in March 2005. The freeholder’s fees were kept to an absolute minimum.
Mrs Molly Mason moved into a purpose-built flat in Little Bromwich in November 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Little Bromwich with a long lease were valued about £208,600. The average ground rent payable was £60 collected per annum. The lease lapsed in 2081. Taking into account 57 years remaining we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
Mr and Mrs. C White was assigned a lease of a newly refurbished flat in Little Bromwich in September 1999. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable homes in Little Bromwich with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out on 4 April 2101. Considering the 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.