Stourbridge leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Stourbridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Stourbridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stourbridge valuers.
Daniel was the the leasehold proprietor of a studio apartment in Stourbridge being sold with a lease of a little over fifty eight years remaining. Daniel informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2010 we were approached by Mr M Garcia who, having owned a basement apartment in Stourbridge in September 1997. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Identical residencies in Stourbridge with an extended lease were valued about £200,800. The average amount of ground rent was £65 billed quarterly. The lease elapsed in 2085. Given that there were 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus legals.
Last Winter we were called by Dr A Laurent , who moved into a one bedroom apartment in Stourbridge in November 2005. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Similar homes in Stourbridge with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out in 2096. Given that there were 71 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.