Unfortunately that a Perry Barr residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Perry Barr property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Perry Barr will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| 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; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Perry Barr lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the freeholder of her studio apartment in Perry Barr, Naomi initiated the lease extension process as the 80 year mark was swiftly advancing. The lease extension was finalised in April 2008. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. Y Clarke took over the lease of a one bedroom apartment in Perry Barr in February 1996. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Perry Barr with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2100. Having 76 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Last month we were phoned by Mr and Mrs. W Rivera , who owned a studio apartment in Perry Barr in March 2001. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Perry Barr with a long lease were in the region of £257,800. The average amount of ground rent was £65 billed per annum. The lease expired on 3 September 2089. Taking into account 65 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.