Birmingham and the Black Country leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Birmingham and the Black Country tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Birmingham and the Black Country you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a Birmingham and the Black Country leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
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 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Birmingham and the Black Country can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 Birmingham and the Black Country lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Thomas, came perilously close to the 80-year mark with the lease on his two bedroom apartment in Birmingham and the Black Country. Having purchased his property two decades ago, the length of the lease was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Thomas was able to extend his lease just in the nick of time in May. Thomas and the freeholder eventually settled on sum of £6,000 . If the lease had fallen below eighty years, the figure would have increased by at least £925.
In 2013 we were e-mailed by Mr and Mrs. W Lambert who, having moved into a first floor flat in Birmingham and the Black Country in August 2007. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical residencies in Birmingham and the Black Country with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed in 2101. Considering the 76 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
In 2013 we were e-mailed by Dr Arthur Roux who, having was assigned a lease of a studio flat in Birmingham and the Black Country in September 2008. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical properties in Birmingham and the Black Country with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2081. Given that there were 56 years remaining we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.