It’s a harsh certainty that a Brownhills residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Brownhills property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Brownhills will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Brownhills leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Eli, came precariously close to the 80-year mark with the lease on his leasehold flat in Brownhills. In buying his home two decades ago, the length of the lease was of minimal significance. As luck would have it, he realised he needed to take action soon on a lease extension. Eli was able to extend his lease just under the wire in January. Eli and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had slid lower than 80 years, the amount would have escalated by at least £850.
Ms G Miller purchased a newly refurbished flat in Brownhills in February 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Brownhills with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed on 20 April 2102. Given that there were 76 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last month we were phoned by Mrs Natalie Michel , who took over the lease of a first floor flat in Brownhills in January 2011. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Brownhills with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 invoiced per annum. The lease ended on 23 October 2091. Given that there were 65 years outstanding we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.