Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Rednal. Inevitably, the length of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Rednal have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before delaying your Rednal lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
The conveyancing solicitors that we work with procure Rednal 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.
Following unsuccessful negotiations with the landlord of her ground floor flat in Rednal, Isobel commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension was concluded in January 2015. The landlord’s fees were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. O Lee , who owned a first floor flat in Rednal in June 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Rednal with an extended lease were in the region of £270,000. The average ground rent payable was £65 collected every twelve months. The lease ended in 2094. Taking into account 68 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Last year we were called by Mr Jasper Michel , who acquired a ground floor flat in Rednal in August 2004. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar homes in Rednal with a long lease were worth £208,600. The mid-range ground rent payable was £60 billed annually. The lease lapsed on 22 August 2083. Taking into account 57 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.