Unfortunately that a Bloxwich residential lease is a wasting asset. As the lease term reduces 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 Bloxwich property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Bloxwich will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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; |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you better control over the value of your Bloxwich leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her basement apartment in Bloxwich, Melissa started the lease extension process as the 80 year mark was fast approaching. The lease extension was finalised in June 2005. The landlord’s fees were kept to an absolute minimum.
Last year we were e-mailed by Dr Isaac Williams , who owned a basement flat in Bloxwich in October 2012. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical properties in Bloxwich with an extended lease were valued about £275,000. The average ground rent payable was £45 collected yearly. The lease finished in 2094. Taking into account 69 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Mrs C Lewis completed a garden flat in Bloxwich in November 1997. The question was if we could approximate the price could be for a ninety year lease extension. Similar flats in Bloxwich with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced yearly. The lease concluded in 2083. Having 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including professional charges.