The market value of Small Heath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Small Heath can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Small Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her two bedroom flat in Small Heath, Samantha started the lease extension process as the 80 year deadline was quickly approaching. The transaction was concluded in August 2014. The freeholder’s fees were kept to an absolute minimum.
Dr Charlie Gunderson took over the lease of a basement apartment in Small Heath in September 2001. We are asked if we could estimate the price would be for a ninety year lease extension. Similar homes in Small Heath with an extended lease were worth £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease concluded in 2084. Given that there were 59 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.
Dr Archie Murphy purchased a ground floor flat in Small Heath in May 2004. The question was if we could approximate the price could be to extend the lease by an additional years. Identical homes in Small Heath with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced quarterly. The lease lapsed in 2095. Having 70 years as a residual term we estimated the premium to the landlord to extend the lease to be between £10,500 and £12,000 plus costs.