The market value of a leasehold property in Little Bromwich is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year cut off point. Statute enables Little Bromwich qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Little Bromwich can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Little Bromwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden was the the leasehold owner of a high value apartment in Little Bromwich being marketed with a lease of a little over 61 years remaining. Jayden informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Jayden to exercise his statutory right. Jayden obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were phoned by Ms Sophia Lambert , who bought a first floor apartment in Little Bromwich in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Little Bromwich with an extended lease were worth £295,000. The average ground rent payable was £50 invoiced monthly. The lease expired in 2101. Taking into account 75 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Last Christmas we were approach by Mr Oliver Kelly , who took over the lease of a first floor apartment in Little Bromwich in October 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Little Bromwich with a long lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease ended in 2090. Considering the 64 years outstanding we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.