Balsall Common leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher amount will be due. Flat owners in Balsall Common will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Balsall Common with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 undertake Balsall Common 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.
Following protracted correspondence with the landlord of her basement flat in Balsall Common, Elizabeth started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was finalised in August 2011. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. V David , who was assigned a lease of a first floor apartment in Balsall Common in August 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Balsall Common with a long lease were valued about £242,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2092. Given that there were 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Last January we were approach by Mr and Mrs. U Baker , who completed a first floor apartment in Balsall Common in May 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar homes in Balsall Common with an extended lease were worth £280,000. The average ground rent payable was £55 collected per annum. The lease ran out on 14 September 2103. Taking into account 78 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.