Stourbridge leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Stourbridge will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Stourbridge with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless 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 experience and the close ties they enjoy with Stourbridge valuers.
Last year Aaron, started to get near to the eighty-year threshold with the lease on his garden apartment in Stourbridge. Having bought his flat two decades ago, the length of the lease was of little bearing. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Aaron extended the lease just under the wire last April. Aaron and the landlord ultimately settled on a premium of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,150.
Last Summer we were phoned by Mr Aaron Bertrand , who purchased a one bedroom apartment in Stourbridge in July 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical properties in Stourbridge with a long lease were worth £285,000. The mid-range ground rent payable was £55 collected per annum. The lease finished in 2105. Given that there were 79 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.
In 2013 we were e-mailed by Mrs Shannon Thomas who, having purchased a newly refurbished flat in Stourbridge in May 2007. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Stourbridge with an extended lease were worth £193,400. The average ground rent payable was £65 invoiced monthly. The lease came to a finish on 11 June 2085. Taking into account 59 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.