As the the remaining lease term of a Lickey End domestic lease lessens so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Lickey End will meet the qualifying criteria; that being said a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 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.
Two years ago Harry, came precariously near to the 80-year mark with the lease on his first floor flat in Lickey End. In buying his property two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he needed to take action soon on Extending the lease. Harry was able to extend his lease at the eleventh hour in April. Harry and the freeholder ultimately settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the amount would have escalated by a minimum £975.
Dr Shannon Lefebvre moved into a studio flat in Lickey End in August 2008. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar residencies in Lickey End with a long lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease terminated in 2092. Considering the 67 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including expenses.
Dr T Davis acquired a ground floor apartment in Lickey End in May 1998. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Lickey End with an extended lease were in the region of £206,200. The average amount of ground rent was £55 collected quarterly. The lease terminated on 3 July 2081. Considering the 56 years unexpired we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.