Halesowen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Halesowen enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Halesowen you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
Using our service gives you enhanced control over the value of your Halesowen leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the landlord of her studio flat in Halesowen, Ellen commenced the lease extension process as the eighty year mark was rapidly nearing. The legal work was concluded in April 2015. The freeholder’s costs were restricted to approximately 550 pounds.
Last year we were phoned by Dr C Jones , who completed a garden apartment in Halesowen in January 1997. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Halesowen with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired in 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
Mr Luke Robinson acquired a basement flat in Halesowen in November 2009. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Halesowen with an extended lease were valued about £183,600. The average amount of ground rent was £65 billed yearly. The lease came to a finish on 28 August 2083. Given that there were 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.