The market value of a leasehold property in Little Bromwich is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be concluded in advance of the eighty year threshold. Statute enables Little Bromwich qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Little Bromwich with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Little 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 Little Bromwich valuers.
Following unsuccessful negotiations with the landlord of her ground floor apartment in Little Bromwich, Emma started the lease extension process as the 80 year mark was rapidly approaching. The lease extension was concluded in October 2006. The landlord’s costs were kept to an absolute minimum.
In 2014 we were contacted by Mr Matthew Walker who, having was assigned a lease of a basement apartment in Little Bromwich in April 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Little Bromwich with an extended lease were worth £250,400. The average ground rent payable was £65 billed monthly. The lease ran out on 6 October 2089. Given that there were 64 years remaining we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus fees.
Last April we were e-mailed by Ms R André , who purchased a first floor apartment in Little Bromwich in July 2006. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical flats in Little Bromwich with an extended lease were valued about £184,000. The average amount of ground rent was £55 invoiced annually. The lease concluded on 8 March 2078. Given that there were 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.