The market value of a leasehold property in Perry Barr depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed in advance of the eighty year cut off point. Statute enables Perry Barr qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Perry Barr with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service will provide you better 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 decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Nathaniel, came dangerously near to the 80-year threshold with the lease on his ground floor flat in Perry Barr. Having bought his flat 19 years previously, the length of the lease was of no relevance. Luckily, he became aware that he needed to take steps soon on a lease extension. Nathaniel was able to extend his lease just under the wire in June. Nathaniel and the freeholder via the managing agents in the end settled on an amount of £6,000 . If the lease had gone lower than eighty years, the price would have increased by at least £1,025.
In 2012 we were phoned by Mrs F Rodríguez who, having owned a ground floor apartment in Perry Barr in January 2006. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar homes in Perry Barr with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed monthly. The lease concluded in 2098. Given that there were 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Dr Emily Morgan moved into a one bedroom flat in Perry Barr in October 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Perry Barr with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 billed per annum. The lease expired in 2087. Taking into account 62 years outstanding we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.