When it comes to residential leasehold premises in Perry Barr, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Residents in Perry Barr with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Perry Barr can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Perry Barr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her garden apartment in Perry Barr, Emily started the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was finalised in November 2012. The landlord’s charges were restricted to under 500 pounds.
Last Spring we were called by Mr and Mrs. C Nelson , who bought a ground floor flat in Perry Barr in September 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Perry Barr with an extended lease were valued about £290,000. The average ground rent payable was £45 invoiced per annum. The lease terminated on 17 July 2098. Given that there were 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.
Last year we were contacted by Mr and Mrs. D Vincent , who owned a purpose-built apartment in Perry Barr in July 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Perry Barr with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease came to a finish on 6 November 2087. Having 61 years left we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of legals.