When it comes to long leasehold property in Dickens Heath, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Residents in Dickens Heath with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. Once a lease has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Dickens Heath with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Dickens Heath can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 procuring Dickens Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke owned a studio apartment in Dickens Heath being sold with a lease of fraction over 72 years outstanding. Luke informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. S Morel bought a one bedroom apartment in Dickens Heath in January 1995. The question was if we could estimate the premium would be to prolong the lease by ninety years. Similar flats in Dickens Heath with an extended lease were worth £275,000. The average amount of ground rent was £45 billed monthly. The lease ran out in 2095. Taking into account 69 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2014 we were contacted by Mr and Mrs. H Pérez who, having took over the lease of a ground floor apartment in Dickens Heath in August 2006. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Dickens Heath with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 billed yearly. The lease expired in 2084. Considering the 58 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.