West Bromwich leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in West Bromwich will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in West Bromwich with more than 100 years outstanding 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in West Bromwich,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Bromwich valuers.
During the course of the last few months Benjamin, came very near to the 80-year mark with the lease on his basement apartment in West Bromwich. In buying his flat 19 years ago, the length of the lease was of no interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Benjamin arranged for a lease extension just ahead of time last August. Benjamin and the freeholder in the end settled on the final figure of £5,500 . If the lease had gone below eighty years, the figure would have escalated by at least £1,075.
Dr Hollie Morgan was assigned a lease of a ground floor apartment in West Bromwich in August 2010. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in West Bromwich with an extended lease were worth £295,000. The average ground rent payable was £45 collected monthly. The lease terminated on 16 July 2101. Taking into account 75 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
In 2012 we were approached by Mr and Mrs. F Morris who, having purchased a first floor apartment in West Bromwich in November 2007. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in West Bromwich with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 collected monthly. The lease finished on 15 August 2090. Having 64 years left we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.