Brierley Hill leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Flat owners in Brierley Hill will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Brierley Hill with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing 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. |
| 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; |
| 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. |
| 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 |
| 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. |
The conveyancers 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.
Trailing protracted discussions with the landlord of her first floor apartment in Brierley Hill, Erin commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension was finalised in July 2010. The landlord’s charges were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. P Scott who, having bought a recently refurbished flat in Brierley Hill in October 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable premises in Brierley Hill with an extended lease were valued around £264,000. The mid-range ground rent payable was £60 collected monthly. The lease terminated in 2079. Considering the 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of legals.
In 2012 we were called by Dr M Mitchell who, having completed a one bedroom apartment in Brierley Hill in April 2011. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative residencies in Brierley Hill with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 collected monthly. The lease ended on 17 June 2090. Taking into account 64 years remaining we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus expenses.