Unfortunately that a Bromsgrove residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Bromsgrove property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Bromsgrove will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland |
Using our service gives you increased control over the value of your Bromsgrove leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dexter was the the leasehold owner of a high value apartment in Bromsgrove on the market with a lease of just over 72 years left. Dexter on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Mr and Mrs. Y James completed a one bedroom apartment in Bromsgrove in April 1997. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar homes in Bromsgrove with an extended lease were worth £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated in 2102. Having 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2012 we were e-mailed by Mr W Richardson who, having was assigned a lease of a recently refurbished flat in Bromsgrove in March 2002. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparative flats in Bromsgrove with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed on 26 August 2082. Taking into account 56 years left we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of legals.