Bloxwich leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Bloxwich will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Bloxwich leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold owner of a studio flat in Bloxwich on the market with a lease of fraction over 72 years left. Harvey on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last month we were approach by Dr N Kelly , who acquired a one bedroom apartment in Bloxwich in January 1995. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical homes in Bloxwich with an extended lease were in the region of £205,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2104. Given that there were 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
Dr Rhiannon Ramírez moved into a recently refurbished flat in Bloxwich in April 1996. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Similar flats in Bloxwich with an extended lease were worth £267,600. The mid-range ground rent payable was £65 collected per annum. The lease finished in 2093. Given that there were 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.