Cradley Heath residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold residencies in Cradley Heath with more than one hundred years left 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Cradley Heath,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cradley Heath valuers.
Finley was the the leasehold proprietor of a high value flat in Cradley Heath on the market with a lease of a little over 59 years left. Finley informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last year we were contacted by Mr and Mrs. V Lewis , who moved into a first floor flat in Cradley Heath in July 2009. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Cradley Heath with a long lease were valued around £189,000. The average ground rent payable was £55 billed yearly. The lease elapsed on 5 February 2079. Having 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
In 2011 we were e-mailed by Mr and Mrs. D Ali who, having acquired a recently refurbished flat in Cradley Heath in November 1995. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical flats in Cradley Heath with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish in 2099. Given that there were 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.