The closer a residential lease in Bilston nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Bilston will qualify for this right; however a lawyer should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bilston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bilston valuers.
Off the back of lengthy correspondence with the landlord of her first floor flat in Bilston, Ashleigh commenced the lease extension process as the eighty year deadline was rapidly nearing. The lease extension completed in November 2006. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were phoned by Dr Megan Clarke , who completed a studio flat in Bilston in February 2006. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar residencies in Bilston with an extended lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease expiry date was on 5 September 2099. Taking into account 73 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Dr D Clark owned a basement apartment in Bilston in September 1995. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable properties in Bilston with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £60 collected per annum. The lease concluded on 13 February 2088. Considering the 62 years outstanding we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.