Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Perry Barr. Clearly, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Perry Barr have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Please give due deliberation before delaying your Perry Barr lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Perry Barr,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Perry Barr valuers.
Last Autumn Aaron, came critically near to the eighty-year threshold with the lease on his one bedroom flat in Perry Barr. In buying his flat two decades ago, the unexpired term was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Aaron was able to extend his lease at the eleventh hour last September. Aaron and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If the lease had slid to less than 80 years, the price would have escalated by at least £1,125.
In 2012 we were called by Dr M Sharif who, having purchased a one bedroom apartment in Perry Barr in June 1997. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable properties in Perry Barr with a long lease were valued about £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished in 2100. Taking into account 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
Last Winter we were approach by Mr and Mrs. S Howard , who moved into a first floor flat in Perry Barr in January 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative properties in Perry Barr with an extended lease were valued about £243,000. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 1 February 2089. Taking into account 63 years left we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of costs.