Perry Barr leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Perry Barr residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Perry Barr you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Perry Barr flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Perry Barr can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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.
Last Spring Alfie, started to get near to the 80-year threshold with the lease on his ground floor flat in Perry Barr. Having purchased his property 18 years ago, the lease term was of minimal importance. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Alfie arranged for a lease extension at the eleventh hour in August. Alfie and the landlord in the end settled on an amount of £5,500 . If he not met the deadline, the premium would have become more costly by a minimum £1,000.
In 2009 we were called by Mr and Mrs. V Taylor who, having owned a studio apartment in Perry Barr in June 2000. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Perry Barr with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished in 2092. Taking into account 66 years remaining we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of fees.
Last Winter we were e-mailed by Mrs Chloe López , who owned a garden apartment in Perry Barr in May 2001. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar residencies in Perry Barr with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 collected monthly. The lease elapsed in 2081. Considering the 55 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including fees.