For those whose Perry Barr home is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Perry Barr with more than one hundred 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built flat in Perry Barr, Natalie commenced the lease extension process just as the lease was approaching the critical 80-year mark. The legal work completed in April 2007. The freeholder’s costs were restricted to about 700 GBP.
In 2009 we were called by Dr Natasha Simon who, having was assigned a lease of a one bedroom flat in Perry Barr in September 2002. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative homes in Perry Barr with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced monthly. The lease terminated on 27 May 2077. Having 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.
Mrs D Dupont acquired a garden flat in Perry Barr in June 2008. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Perry Barr with a long lease were valued around £285,000. The average amount of ground rent was £45 billed yearly. The lease concluded in 2097. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.