There is no doubt about it a leasehold property in Bloxwich is a wasting asset as a result of the shortening lease. Where the residual term has, over 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired 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 sooner as opposed to later. Most flat owners in Bloxwich will qualify for this right; however a conveyancer can confirm if you are eligible for a lease extension. In limited 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 residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bloxwich,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bloxwich valuers.
Adam was the the leasehold proprietor of a studio flat in Bloxwich on the market with a lease of a little over 61 years remaining. Adam on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
Last Spring we were approach by Dr Gabriel David , who moved into a ground floor flat in Bloxwich in March 1995. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Similar flats in Bloxwich with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 collected per annum. The lease ended in 2101. Considering the 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2009 we were contacted by Mr Aarav Collins who, having bought a studio flat in Bloxwich in June 2001. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar flats in Bloxwich with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed annually. The lease elapsed on 8 March 2090. Considering the 65 years left we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.