The nearer a domestic lease in Willenhall gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Willenhall will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you qualify to extend your lease. 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 generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancers that we work with undertake Willenhall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Michael, came seriously near to the eighty-year threshold with the lease on his studio flat in Willenhall. In buying his flat two decades ago, the length of the lease was of little bearing. Thankfully, he realised he needed to take steps soon on a lease extension. Michael was able to extend his lease at the eleventh hour last April. Michael and the freeholder via the management company in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have increased by at least £1,075.
Last year we were approach by Mr and Mrs. L Miller , who was assigned a lease of a purpose-built flat in Willenhall in November 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar properties in Willenhall with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2075. Considering the 50 years left we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus expenses.
In 2012 we were approached by Mrs Melissa Flores who, having acquired a recently refurbished flat in Willenhall in May 1999. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Willenhall with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease finished on 22 August 2086. Given that there were 61 years as a residual term we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus expenses.