It’s an underpublicised truth that a Perry Barr residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Perry Barr property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Perry Barr will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Perry Barr leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful discussions with the freeholder of her two bedroom flat in Perry Barr, Holly initiated the lease extension process as the 80 year threshold was fast approaching. The lease extension was concluded in June 2015. The landlord’s fees were negotiated to about 550 pounds.
In 2012 we were phoned by Mr Jasper Cooper who, having bought a garden flat in Perry Barr in March 2009. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Perry Barr with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish in 2080. Considering the 55 years remaining we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.
Mr and Mrs. G Murphy was assigned a lease of a purpose-built apartment in Perry Barr in February 2007. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Perry Barr with an extended lease were valued about £295,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2100. Considering the 75 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.