The closer a residential lease in Little Bromwich gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Little Bromwich will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Little Bromwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted discussions with the landlord of her basement flat in Little Bromwich, Rebecca initiated the lease extension process as the eighty year mark was rapidly advancing. The transaction was concluded in November 2010. The landlord’s fees were kept to an absolute minimum.
Last month we were called by Ms Naomi Sánchez , who acquired a ground floor flat in Little Bromwich in November 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Little Bromwich with an extended lease were valued around £200,000. The average amount of ground rent was £50 billed annually. The lease finished on 13 October 2102. Considering the 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2014 we were contacted by Mr and Mrs. Y Brooks who, having acquired a one bedroom flat in Little Bromwich in February 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Little Bromwich with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 collected monthly. The lease ended on 27 June 2091. Considering the 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.