With a long leasehold property in Rowley Regis, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Rowley Regis with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has below eighty years left, under the relevant Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Rowley Regis with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake Rowley Regis 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 lawyer we work with provide it.
Trailing lengthy discussions with the landlord of her leasehold flat in Rowley Regis, Hannah initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in March 2013. The freeholder’s charges were restricted to below five hundred GBP.
Mr and Mrs. I Mercier took over the lease of a first floor apartment in Rowley Regis in September 2009. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative flats in Rowley Regis with 100 year plus lease were valued around £256,600. The average ground rent payable was £60 billed monthly. The lease concluded on 28 February 2077. Having 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus professional charges.
Last month we were phoned by Dr E Davis , who owned a studio apartment in Rowley Regis in October 2004. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical properties in Rowley Regis with a long lease were worth £218,000. The average amount of ground rent was £45 billed annually. The lease ran out in 2088. Having 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.