There is no doubt about it a leasehold property in Lickey End is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner rather than later. The majority of flat owners in Lickey End will meet the qualifying criteria; however a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 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 unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Lickey End leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her first floor apartment in Lickey End, Robyn started the lease extension process as the 80 year deadline was swiftly nearing. The lease extension completed in November 2014. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. Y Murphy completed a first floor flat in Lickey End in July 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar properties in Lickey End with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 14 January 2085. Given that there were 60 years left we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.
In 2012 we were phoned by Dr S Miller who, having took over the lease of a first floor apartment in Lickey End in July 2012. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative flats in Lickey End with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 8 October 2105. Taking into account 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.