As the the remaining lease term of a Bromsgrove residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Bromsgrove will qualify for this right; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Bromsgrove with in excess of 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Bromsgrove can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bromsgrove lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Isaac, started to get near to the eighty-year mark with the lease on his first floor flat in Bromsgrove. Having bought his home two decades ago, the unexpired term was of little importance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Isaac arranged for a lease extension just under the wire last April. Isaac and the landlord in the end settled on the final figure of £5,500 . If he not met the deadline, the figure would have gone up by a minimum £950.
Mr and Mrs. G Petit bought a ground floor apartment in Bromsgrove in May 1997. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Bromsgrove with an extended lease were valued about £261,600. The mid-range amount of ground rent was £60 collected annually. The lease terminated on 6 April 2077. Taking into account 52 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus legals.
Mr and Mrs. P François owned a purpose-built flat in Bromsgrove in November 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Bromsgrove with a long lease were valued about £218,000. The average ground rent payable was £45 billed annually. The lease lapsed on 6 May 2088. Taking into account 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus fees.