Rowley Regis leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Rowley Regis tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rowley Regis you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Rowley Regis flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Rowley Regis with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rowley Regis can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Rowley Regis lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Henry, started to get close to the 80-year threshold with the lease on his first floor flat in Rowley Regis. In buying his property two decades ago, the length of the lease was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Henry was able to extend his lease just under the wire last January. Henry and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,025.
Last April we were called by Ms J Turner , who moved into a one bedroom apartment in Rowley Regis in November 2009. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparable premises in Rowley Regis with 100 year plus lease were valued about £220,400. The average ground rent payable was £45 billed per annum. The lease terminated on 13 July 2089. Considering the 64 years left we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus costs.
Mr and Mrs. Y Hernández was assigned a lease of a studio apartment in Rowley Regis in April 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Rowley Regis with an extended lease were in the region of £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease termination date was in 2100. Taking into account 75 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.