Little Bromwich leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Little Bromwich will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Little Bromwich with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Little Bromwich leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Ethan owned a studio flat in Little Bromwich being sold with a lease of just over fifty eight years left. Ethan on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Elijah Sánchez took over the lease of a studio apartment in Little Bromwich in October 2012. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical properties in Little Bromwich with a long lease were valued around £174,200. The average ground rent payable was £55 collected quarterly. The lease concluded on 25 April 2077. Taking into account 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
In 2010 we were phoned by Mr and Mrs. B Richardson who, having completed a studio flat in Little Bromwich in April 2004. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Identical flats in Little Bromwich with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired on 5 January 2097. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.