There is no doubt about it a leasehold flat or house in Little Bromwich is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Little Bromwich will qualify for this right; however a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Little Bromwich leasehold, as your property will be more valuable and marketable in relation to the lease length should you want 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.
William owned a 2 bedroom apartment in Little Bromwich being marketed with a lease of a little over 72 years unexpired. William on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Summer we were approach by Ms A Young , who was assigned a lease of a first floor apartment in Little Bromwich in April 2000. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Little Bromwich with an extended lease were worth £243,000. The mid-range ground rent payable was £65 collected annually. The lease end date was in 2089. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.
Mrs S Vincent purchased a newly refurbished flat in Little Bromwich in February 2002. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical residencies in Little Bromwich with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 collected monthly. The lease expired on 6 April 2078. Given that there were 52 years unexpired we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.