The nearer a residential lease in Codsall nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Codsall will qualify for this right; nevertheless a lawyer should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Codsall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 9 months of unsuccessful correspondence with the landlord of her purpose-built flat in Codsall, Katie initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was concluded in November 2005. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Mr Ibrahim Norbert , who was assigned a lease of a first floor apartment in Codsall in November 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative flats in Codsall with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended in 2106. Considering the 80 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Last year we were called by Dr Sian Davis , who took over the lease of a garden apartment in Codsall in May 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Codsall with an extended lease were worth £200,800. The average ground rent payable was £65 invoiced quarterly. The lease expired on 3 August 2086. Taking into account 60 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.