As the length of the unexpired term of a Perry Barr residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Perry Barr will meet the qualifying criteria; that being said a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with handle Perry Barr lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Leo owned a 2 bedroom apartment in Perry Barr on the market with a lease of fraction over 59 years unexpired. Leo informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Last month we were phoned by Mr and Mrs. P Wright , who owned a basement apartment in Perry Barr in August 2004. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Perry Barr with a long lease were worth £206,200. The average ground rent payable was £60 invoiced annually. The lease elapsed in 2082. Considering the 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of fees.
In 2014 we were called by Dr Kyle Robinson who, having owned a one bedroom apartment in Perry Barr in July 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Perry Barr with 100 year plus lease were worth £300,000. The average ground rent payable was £50 invoiced monthly. The lease expired in 2102. Given that there were 76 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.