With a residential leasehold property in Brownhills, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Brownhills with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has less than 80 years outstanding, under the relevant Act the freeholder can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brownhills can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Brownhills lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron was the the leasehold owner of a conversion flat in Brownhills on the market with a lease of a few days over fifty eight years left. Cameron on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. L Bailey moved into a one bedroom flat in Brownhills in April 2000. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative homes in Brownhills with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish on 1 January 2096. Taking into account 71 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
Last Spring we were contacted by Mr Jayden Baker , who completed a first floor flat in Brownhills in July 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical properties in Brownhills with a long lease were worth £225,800. The mid-range ground rent payable was £60 collected monthly. The lease ended in 2085. Having 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of expenses.