Halesowen residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Halesowen,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Halesowen valuers.
During the course of the last few months Aaron, started to get close to the 80-year threshold with the lease on his garden flat in Halesowen. In buying his property two decades ago, the length of the lease was of minimal importance. Fortunately, he became aware that he needed to take action soon on a lease extension. Aaron arranged for a lease extension just ahead of time in April. Aaron and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the sum would have gone up by at least £925.
Dr Omar Laurent bought a ground floor flat in Halesowen in May 2007. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical properties in Halesowen with an extended lease were worth £176,200. The average ground rent payable was £65 collected monthly. The lease ended on 24 January 2081. Considering the 56 years as a residual term we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 plus legals.
In 2011 we were phoned by Mr S Thompson who, having took over the lease of a garden apartment in Halesowen in April 1996. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical homes in Halesowen with a long lease were worth £237,600. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2092. Having 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.