When it comes to residential leasehold premises in Rednal, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Rednal with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years left, under the current legislation the landlord can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rednal can be a difficult process. We recommend you get guidance from a conveyancer 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 in-depth market knowledge dealing with Rednal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Mason, started to get near to the 80-year threshold with the lease on his leasehold apartment in Rednal. Having purchased his home 19 years ago, the lease term was of minimal bearing. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Mason arranged for a lease extension just in the nick of time in July. Mason and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If the lease had descended below eighty years, the figure would have increased by a minimum £1,050.
Mr I Clark acquired a first floor flat in Rednal in March 2000. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative residencies in Rednal with a long lease were worth £250,400. The average amount of ground rent was £65 billed yearly. The lease ran out on 5 March 2090. Having 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.
Mr F Gray moved into a garden apartment in Rednal in March 1998. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable homes in Rednal with an extended lease were in the region of £184,000. The average ground rent payable was £55 invoiced yearly. The lease ran out in 2079. Given that there were 53 years outstanding we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.