With a domestic leasehold property in Bartley Green, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Bartley Green with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years left, under the current Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bartley Green can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Bartley Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a high value flat in Bartley Green being sold with a lease of a few days over 59 years unexpired. Stanley on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2014 we were phoned by Mrs Isabella Evans who, having bought a studio flat in Bartley Green in June 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Bartley Green with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2076. Having 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.
Mr and Mrs. E Ward completed a basement flat in Bartley Green in June 2010. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar homes in Bartley Green with a long lease were worth £285,000. The average ground rent payable was £45 billed annually. The lease ended on 11 October 2096. Given that there were 71 years unexpired we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.