As the the remaining lease term of a Brierley Hill residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Brierley Hill will qualify for this right; however a lawyer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Brierley Hill,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brierley Hill valuers.
In recent months Archie, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Brierley Hill. In buying his property 18 years ago, the unexpired term was of minimal importance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Archie was able to extend his lease just under the wire last August. Archie and the freeholder subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have become more costly by a minimum £925.
Last Summer we were phoned by Ms H Leroy , who owned a studio apartment in Brierley Hill in June 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Brierley Hill with an extended lease were in the region of £285,000. The average ground rent payable was £55 collected annually. The lease came to a finish in 2105. Having 79 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last Winter we were contacted by Mr D Morgan , who took over the lease of a recently refurbished flat in Brierley Hill in August 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Brierley Hill with a long lease were in the region of £193,400. The average ground rent payable was £65 billed every twelve months. The lease expiry date was in 2085. Taking into account 59 years outstanding we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including professional charges.