With a domestic leasehold premises in Walsall, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Walsall with a lease nearing 81 years unexpired should seriously think of extending it without delay. When a lease has under eighty years outstanding, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Walsall with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Walsall can be a difficult process. We recommend you procure professional help from a lawyer 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 procuring Walsall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold owner of a high value apartment in Walsall on the market with a lease of a few days over sixty years outstanding. Joshua informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were phoned by Ms D Garcia who, having completed a garden flat in Walsall in September 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Walsall with a long lease were in the region of £189,000. The average amount of ground rent was £55 billed quarterly. The lease concluded on 13 November 2078. Considering the 53 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
In 2013 we were phoned by Dr Elizabeth Cooper who, having bought a one bedroom flat in Walsall in May 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical flats in Walsall with a long lease were in the region of £290,000. The average ground rent payable was £45 billed per annum. The lease termination date was on 24 February 2098. Given that there were 73 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.