With a domestic leasehold premises in Perry Barr, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Residents in Perry Barr with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Perry Barr,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Perry Barr valuers.
Last year Jayden, started to get close to the 80-year threshold with the lease on his ground floor apartment in Perry Barr. Having bought his home 19 years previously, the lease term was of little concern. Thankfully, he recognised he needed to take steps soon on Extending the lease. Jayden arranged for a lease extension at the eleventh hour in August. Jayden and the freeholder eventually settled on a premium of £5,500 . If the lease had descended to less than 80 years, the price would have escalated by at least £1,075.
In 2009 we were contacted by Mrs T Collins who, having took over the lease of a basement flat in Perry Barr in March 2005. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative properties in Perry Barr with a long lease were in the region of £206,200. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2081. Taking into account 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.
Mr and Mrs. S Wright was assigned a lease of a ground floor apartment in Perry Barr in July 1995. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative premises in Perry Barr with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected monthly. The lease elapsed in 2101. Having 76 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.