Balsall Heath leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Flat owners in Balsall Heath will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Balsall Heath leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a conversion flat in Balsall Heath on the market with a lease of a few days over 72 years outstanding. Ollie informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last January we were approach by Mr and Mrs. S Martínez , who bought a newly refurbished apartment in Balsall Heath in March 2005. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Balsall Heath with an extended lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 17 November 2088. Taking into account 63 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.
In 2010 we were contacted by Mr and Mrs. O Miller who, having took over the lease of a basement flat in Balsall Heath in April 2009. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical properties in Balsall Heath with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 invoiced monthly. The lease finished in 2077. Given that there were 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.