Unfortunately that a Little Bromwich residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Little Bromwich property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most flat owners in Little Bromwich will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Little Bromwich leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold owner of a 2 bedroom flat in Little Bromwich being marketed with a lease of a few days over 72 years left. Kyle informally contacted his landlord being a well known Manchester-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 a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2009 we were e-mailed by Mr and Mrs. E Moreau who, having bought a basement flat in Little Bromwich in June 2009. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Little Bromwich with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease expiry date was on 20 November 2104. Given that there were 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Last Autumn we were contacted by Mr and Mrs. I Hill , who moved into a one bedroom apartment in Little Bromwich in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Little Bromwich with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced quarterly. The lease lapsed in 2093. Given that there were 67 years unexpired we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.