Chances are that if you own a flat in West Bromwich you actually own a long leasehold interest over your property
Leasehold properties in West Bromwich with in excess of one hundred years left on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in West Bromwich,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Bromwich valuers.
After protracted correspondence with the landlord of her first floor apartment in West Bromwich, Zoe started the lease extension process as the 80 year mark was fast nearing. The lease extension was finalised in April 2009. The freeholder’s costs were negotiated to slightly above 550 pounds.
Last Autumn we were contacted by Dr N Howard , who bought a purpose-built apartment in West Bromwich in February 2002. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable homes in West Bromwich with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 billed quarterly. The lease came to a finish in 2076. Having 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last year we were e-mailed by Mr T Morris , who acquired a first floor apartment in West Bromwich in May 2011. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative residencies in West Bromwich with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease elapsed in 2096. Considering the 71 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.