West Bromwich leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in West Bromwich will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in West Bromwich can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with West Bromwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Hunter, started to get near to the 80-year mark with the lease on his studio apartment in West Bromwich. Having bought his property two decades ago, the length of the lease was of minimal importance. by good luck, he realised he needed to take action soon on Extending the lease. Hunter was able to extend his lease at the eleventh hour in March. Hunter and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had gone lower than eighty years, the amount would have escalated by at least £1,050.
Last month we were phoned by Dr S Lefebvre , who acquired a one bedroom apartment in West Bromwich in July 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative homes in West Bromwich with an extended lease were valued around £290,000. The average ground rent payable was £45 collected every twelve months. The lease terminated on 23 May 2099. Considering the 73 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2010 we were contacted by Dr E Gómez who, having purchased a one bedroom flat in West Bromwich in June 1997. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar flats in West Bromwich with a long lease were worth £235,600. The average amount of ground rent was £60 billed every twelve months. The lease expired in 2088. Having 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus fees.