As the the remaining lease term of a Wednesbury residential lease diminished so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Wednesbury will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you enhanced control over the value of your Wednesbury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Daniel, started to get near to the eighty-year mark with the lease on his ground floor apartment in Wednesbury. In buying his property two decades ago, the lease term was of no concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Daniel arranged for a lease extension at the eleventh hour in March. Daniel and the freeholder in the end settled on the final figure of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £875.
In 2012 we were contacted by Mr Riley Williams who, having bought a basement flat in Wednesbury in May 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical premises in Wednesbury with an extended lease were worth £208,200. The average amount of ground rent was £65 billed monthly. The lease elapsed in 2087. Taking into account 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Ms S Leroy completed a ground floor apartment in Wednesbury in August 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Wednesbury with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 19 May 2098. Having 72 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.