The only way is down when it comes to Perry Barr lease terms. Perry Barr properties that have a remaining term lower than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will increase.
Leasehold residencies in Perry Barr with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Engaging our service gives you increased control over the value of your Perry Barr leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Adam, started to get near to the 80-year threshold with the lease on his ground floor apartment in Perry Barr. Having purchased his home two decades ago, the length of the lease was of no significance. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Adam extended the lease at the eleventh hour in July. Adam and the landlord ultimately settled on an amount of £5,000 . If the lease had dipped below eighty years, the premium would have increased by at least £950.
Last Autumn we were called by Mr Ryan Davis , who bought a basement apartment in Perry Barr in April 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Perry Barr with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 billed annually. The lease concluded on 24 January 2086. Taking into account 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 not including professional charges.
In 2010 we were approached by Mr and Mrs. T Anderson who, having moved into a studio apartment in Perry Barr in November 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Perry Barr with a long lease were valued around £171,800. The average amount of ground rent was £55 billed annually. The lease expired on 25 November 2075. Given that there were 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of costs.