Smethwick leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Smethwick will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Smethwick can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 Smethwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the freeholder of her basement flat in Smethwick, Freya initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The transaction was concluded in February 2015. The landlord’s charges were restricted to under six hundred GBP.
Last month we were phoned by Mr and Mrs. S Miller , who completed a first floor flat in Smethwick in July 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Smethwick with a long lease were worth £198,800. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 20 November 2081. Having 55 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus costs.
Last January we were phoned by Mr and Mrs. L Bailey , who was assigned a lease of a one bedroom apartment in Smethwick in August 2010. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Smethwick with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed yearly. The lease finished in 2101. Given that there were 75 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.