Halesowen leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Halesowen will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Halesowen with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Halesowen leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Joseph, started to get close to the eighty-year threshold with the lease on his basement apartment in Halesowen. Having purchased his flat twenty years previously, the length of the lease was of no bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Joseph arranged for a lease extension just under the wire last March. Joseph and the landlord in the end agreed on sum of £5,000 . If he had missed the deadline, the amount would have gone up by at least £850.
Last month we were called by Mr Alex Cook , who took over the lease of a purpose-built apartment in Halesowen in November 1997. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative flats in Halesowen with an extended lease were in the region of £186,000. The average amount of ground rent was £65 billed quarterly. The lease concluded in 2084. Given that there were 58 years remaining we estimated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 not including costs.
In 2013 we were approached by Dr Ellie Smith who, having purchased a ground floor apartment in Halesowen in August 2007. We are asked if we could approximate the premium could be to extend the lease by 90 years. Similar residencies in Halesowen with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish in 2095. Considering the 69 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.