The only way is down when it comes to Brierley Hill lease terms. Brierley Hill flats that have a residual term fewer than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Brierley Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Twenty four months ago Milo, came very close to the 80-year mark with the lease on his leasehold apartment in Brierley Hill. Having purchased his home 18 years previously, the unexpired term was of little concern. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Milo arranged for a lease extension just ahead of time in May. Milo and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If the lease had dipped to less than eighty years, the figure would have increased by at least £975.
In 2011 we were approached by Mr and Mrs. R Norbert who, having acquired a one bedroom flat in Brierley Hill in July 2012. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative homes in Brierley Hill with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed per annum. The lease lapsed in 2103. Given that there were 77 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Mr and Mrs. D González completed a studio flat in Brierley Hill in January 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar homes in Brierley Hill with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 collected quarterly. The lease ended on 27 April 2083. Taking into account 57 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.