Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Little Bromwich. Clearly, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Little Bromwich have the legal entitlement to extend the lease for an additional ninety years under statute. Please give due attention before putting off your Little Bromwich lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to 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. |
| Lloyds TSB Scotland | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Little Bromwich,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Bromwich valuers.
Last October Jamie, started to get close to the eighty-year mark with the lease on his leasehold apartment in Little Bromwich. In buying his property two decades ago, the lease term was of minimal relevance. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Jamie extended the lease at the eleventh hour last January. Jamie and the freeholder via the managing agents in the end settled on an amount of £5,000 . If he not met the deadline, the figure would have escalated by a minimum £1,100.
In 2013 we were contacted by Mr and Mrs. W Walker who, having bought a one bedroom apartment in Little Bromwich in April 2004. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar flats in Little Bromwich with an extended lease were in the region of £257,800. The average amount of ground rent was £65 billed annually. The lease terminated on 26 March 2090. Given that there were 65 years left we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including expenses.
Last Summer we were e-mailed by Dr Charlie Davis , who bought a studio apartment in Little Bromwich in March 1995. The question was if we could estimate the price could be for a 90 year lease extension. Comparable flats in Little Bromwich with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 billed annually. The lease elapsed in 2079. Considering the 54 years left we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of expenses.