With a long leasehold property in Bromsgrove, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Anyone in Bromsgrove with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years left, under the relevant statute the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Bromsgrove with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Retaining our service gives you better control over the value of your Bromsgrove leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad was the the leasehold owner of a conversion apartment in Bromsgrove on the market with a lease of just over 61 years left. Muhammad on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to 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 Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Dr M Brooks who, having completed a newly refurbished flat in Bromsgrove in September 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical residencies in Bromsgrove with an extended lease were worth £225,400. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded in 2090. Taking into account 64 years unexpired we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including fees.
Last Winter we were e-mailed by Mr and Mrs. R Morgan , who was assigned a lease of a purpose-built apartment in Bromsgrove in August 2004. 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. Comparable properties in Bromsgrove with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated on 14 October 2101. Considering the 75 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.