As the the remaining lease term of a Lickey End domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Lickey End will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Lickey End with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Engaging our service gives you increased control over the value of your Lickey End leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ali was the the leasehold owner of a 2 bedroom flat in Lickey End being marketed with a lease of fraction over fifty eight years remaining. Ali informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were approached by Mr and Mrs. D Adams who, having purchased a first floor apartment in Lickey End in March 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Lickey End with an extended lease were worth £205,000. The average ground rent payable was £50 billed yearly. The lease lapsed on 24 January 2104. Having 79 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Last Winter we were e-mailed by Mr Luke Rodríguez , who owned a garden flat in Lickey End in August 1996. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable homes in Lickey End with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced monthly. The lease ended in 2093. Given that there were 68 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.