The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Little Bromwich can extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your Little Bromwich lease extension. Shelving that expense now simply increases the price you will ultimately have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Little Bromwich leasehold, as your property will be more valuable and saleable in respect 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.
After protracted negotiations with the landlord of her garden flat in Little Bromwich, Lauren initiated the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was finalised in September 2006. The landlord’s fees were restricted to below four hundred GBP.
Last year we were phoned by Dr D Reed , who owned a studio flat in Little Bromwich in November 2011. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable residencies in Little Bromwich with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed annually. The lease terminated in 2095. Considering the 70 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
In 2012 we were e-mailed by Mr and Mrs. N Cook who, having purchased a one bedroom apartment in Little Bromwich in May 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Little Bromwich with an extended lease were in the region of £223,400. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2084. Considering the 59 years outstanding we approximated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.