It’s a harsh truth that a Balsall Common residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Balsall Common property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most flat owners in Balsall Common will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Balsall Common with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
Lease extensions in Balsall Common can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Balsall Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Theo, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Balsall Common. Having bought his property two decades ago, the length of the lease was of minimal concern. by good luck, he noticed he needed to take steps soon on Extending the lease. Theo arranged for a lease extension at the eleventh hour in September. Theo and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If the lease had dipped to less than 80 years, the amount would have escalated by at least £1,150.
Ms E Scott acquired a studio apartment in Balsall Common in October 2008. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar properties in Balsall Common with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £65 collected monthly. The lease ended on 22 July 2081. Given that there were 55 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were approached by Mr and Mrs. T Richardson who, having took over the lease of a first floor flat in Balsall Common in May 2004. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Balsall Common with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed monthly. The lease lapsed on 11 April 2092. Taking into account 66 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.