Little Bromwich leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Little Bromwich will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Little Bromwich with over one hundred years remaining 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
Halifax | 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. |
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 |
Retaining our service will provide you better control over the value of your Little Bromwich leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her leasehold flat in Little Bromwich, Ella commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was finalised in August 2006. The freeholder’s charges were restricted to a tad over 450 GBP.
Mr and Mrs. Y Campbell was assigned a lease of a purpose-built apartment in Little Bromwich in February 2012. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical flats in Little Bromwich with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease terminated on 8 January 2096. Taking into account 71 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
In 2013 we were e-mailed by Ms R Davis who, having took over the lease of a studio flat in Little Bromwich in May 2010. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Little Bromwich with an extended lease were valued around £225,800. The average amount of ground rent was £60 invoiced annually. The lease lapsed in 2085. Taking into account 60 years unexpired we calculated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of expenses.