With a long leasehold premises in Brierley Hill, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Brierley Hill with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the relevant Act the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Brierley Hill with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Lease extensions in Brierley Hill can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge procuring Brierley Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago John, came dangerously near to the 80-year threshold with the lease on his first floor apartment in Brierley Hill. In buying his flat 18 years previously, the length of the lease was of little significance. Luckily, he realised he needed to take action soon on Extending the lease. John was able to extend his lease just under the wire last March. John and the freeholder via the management company subsequently settled on sum of £5,500 . If the lease had dropped lower than eighty years, the sum would have become more costly by at least £975.
Ms K Sharif owned a newly refurbished flat in Brierley Hill in February 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Brierley Hill with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended in 2088. Given that there were 63 years outstanding we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus professional charges.
Mr and Mrs. G Bennett purchased a ground floor apartment in Brierley Hill in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Brierley Hill with a long lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease terminated in 2099. Considering the 74 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.