For those whose Perry Barr property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Perry Barr with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Irrespective 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.
Matthew owned a conversion apartment in Perry Barr on the market with a lease of just over 61 years outstanding. Matthew informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Dr Rebecca Nguyen acquired a first floor flat in Perry Barr in October 2001. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Perry Barr with an extended lease were valued around £191,400. The average ground rent payable was £55 invoiced every twelve months. The lease end date was in 2079. Having 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.
Mrs P Robinson moved into a basement apartment in Perry Barr in January 2003. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical homes in Perry Barr with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 invoiced every twelve months. The lease expired on 27 September 2099. Taking into account 74 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.