On the balance of probabilities if you own a flat in Pelsall you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Pelsall leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Finley, came seriously near to the eighty-year mark with the lease on his basement flat in Pelsall. In buying his flat two decades ago, the unexpired term was of little concern. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Finley was able to extend his lease just in the nick of time in April. Finley and the landlord subsequently agreed on sum of £5,000 . If the lease had dropped lower than 80 years, the sum would have increased by at least £850.
Last Winter we were approach by Mr and Mrs. F Jones , who was assigned a lease of a ground floor flat in Pelsall in August 2010. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Similar flats in Pelsall with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish on 14 October 2104. Having 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
In 2013 we were e-mailed by Mr and Mrs. T Stewart who, having bought a newly refurbished apartment in Pelsall in June 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Pelsall with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease expired in 2093. Taking into account 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 not including professional charges.