The market value of Stourbridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Stourbridge with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Stourbridge leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted correspondence with the landlord of her studio flat in Stourbridge, Katherine started the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work was concluded in July 2015. The landlord’s charges were restricted to about 650 GBP.
Last Winter we were called by Ms Ella Scott , who bought a garden flat in Stourbridge in September 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Stourbridge with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced every twelve months. The lease elapsed on 28 April 2090. Considering the 65 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last month we were e-mailed by Mrs V Gray , who moved into a one bedroom flat in Stourbridge in October 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Stourbridge with an extended lease were valued about £275,000. The average amount of ground rent was £55 billed per annum. The lease came to a finish on 12 November 2101. Considering the 76 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.