As the the remaining lease term of a Bilston domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Bilston will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Bilston can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bilston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her two bedroom apartment in Bilston, Caitlin commenced the lease extension process as the eighty year mark was quickly coming. The transaction was finalised in February 2011. The landlord’s charges were negotiated to a tad over 450 GBP.
Last October we were called by Dr Jordan Gray , who completed a first floor flat in Bilston in August 1997. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Bilston with 100 year plus lease were valued about £201,200. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed in 2081. Having 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
In 2009 we were phoned by Mr and Mrs. V Sharif who, having moved into a basement apartment in Bilston in May 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable properties in Bilston with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish in 2101. Taking into account 76 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.