With a residential leasehold property in Perry Barr, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Perry Barr with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has under 80 years outstanding, under the relevant Act the landlord can calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Perry Barr,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Perry Barr valuers.
During the course of the last few months Lewis, started to get near to the eighty-year threshold with the lease on his studio flat in Perry Barr. Having purchased his flat two decades ago, the lease term was of little interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Lewis was able to extend his lease just under the wire in September. Lewis and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had gone lower than eighty years, the amount would have increased by at least £1,025.
In 2013 we were contacted by Dr I Brooks who, having was assigned a lease of a one bedroom apartment in Perry Barr in February 2010. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Perry Barr with a long lease were in the region of £295,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish in 2100. Given that there were 75 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
In 2011 we were approached by Mr and Mrs. H Campbell who, having moved into a garden apartment in Perry Barr in February 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Perry Barr with a long lease were worth £250,400. The average ground rent payable was £65 invoiced monthly. The lease expired on 11 April 2089. Taking into account 64 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including professional charges.