Small Heath leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Small Heath will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Small Heath with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with handle Small Heath 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.
Freddie was the the leasehold proprietor of a studio apartment in Small Heath on the market with a lease of a little over sixty years unexpired. Freddie on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last August we were e-mailed by Mr and Mrs. W Morel , who completed a one bedroom flat in Small Heath in April 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Small Heath with a long lease were worth £260,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded in 2096. Given that there were 71 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Mrs Phoebe Díaz moved into a newly refurbished apartment in Small Heath in July 2002. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Small Heath with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease finished in 2076. Given that there were 51 years remaining we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus costs.