Perry Barr leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Perry Barr will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Perry Barr with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Perry Barr can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 a wealth of experience 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.
Subsequent to unsuccessful discussions with the landlord of her purpose-built flat in Perry Barr, Amelia initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work completed in July 2009. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. T David , who completed a garden apartment in Perry Barr in April 2000. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative premises in Perry Barr with a long lease were in the region of £171,800. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2075. Given that there were 50 years unexpired we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.
Last September we were e-mailed by Mrs L Johnson , who completed a studio flat in Perry Barr in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Perry Barr with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2095. Given that there were 70 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.