It’s a harsh truth that a Brierley Hill residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Brierley Hill property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Brierley Hill will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Brierley Hill with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better control over the value of your Brierley Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Brierley Hill, Grace started the lease extension process as the eighty year deadline was quickly coming. The lease extension was concluded in November 2005. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. V Fournier moved into a recently refurbished flat in Brierley Hill in November 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Brierley Hill with an extended lease were in the region of £254,200. The average amount of ground rent was £60 billed every twelve months. The lease expired in 2076. Taking into account 51 years outstanding we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus legals.
Last Summer we were phoned by Mr I Gómez , who owned a first floor flat in Brierley Hill in October 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative residencies in Brierley Hill with 100 year plus lease were worth £215,600. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2087. Considering the 62 years left we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.