With a residential leasehold property in Brierley Hill, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years left. Leasehold owners in Brierley Hill with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB |
Engaging our service will provide you enhanced control over the value of your Brierley Hill leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a conversion apartment in Brierley Hill being sold with a lease of just over sixty years unexpired. Jackson informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Dr O Davies purchased a garden flat in Brierley Hill in July 2006. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical homes in Brierley Hill with 100 year plus lease were valued around £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended on 6 June 2086. Taking into account 60 years left we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
In 2013 we were called by Dr J Cox who, having took over the lease of a basement flat in Brierley Hill in September 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Brierley Hill with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 collected annually. The lease terminated in 2097. Given that there were 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.