The market value of a leasehold property in Perry Barr depends on how long the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised prior to the eighty year threshold. Current legislation entitles Perry Barr qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Perry Barr leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Kyle, came critically close to the eighty-year mark with the lease on his purpose- built apartment in Perry Barr. Having purchased his home twenty years previously, the length of the lease was of no importance. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Kyle extended the lease at the eleventh hour last August. Kyle and the landlord ultimately settled on an amount of £6,000 . If the lease had descended lower than 80 years, the figure would have become more exhorbitant by a minimum £1,075.
Ms Elizabeth Khan owned a one bedroom apartment in Perry Barr in August 2009. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Perry Barr with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 collected annually. The lease lapsed on 22 November 2094. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
In 2010 we were e-mailed by Mr and Mrs. A Lambert who, having took over the lease of a basement flat in Perry Barr in September 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Perry Barr with an extended lease were in the region of £208,600. The average amount of ground rent was £60 collected every twelve months. The lease concluded on 22 October 2083. Having 57 years unexpired we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus fees.