Balsall Heath leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Balsall Heath tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Balsall Heath you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Balsall Heath leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 be at least 75 years plus the term of the mortgage 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 |
| 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 Heath 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 conveyancer we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her purpose-built apartment in Balsall Heath, Jasmine commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was concluded in January 2010. The landlord’s costs were kept to an absolute minimum.
Dr Rachel Evans was assigned a lease of a purpose-built apartment in Balsall Heath in June 2005. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparable flats in Balsall Heath with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 23 June 2106. Taking into account 80 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Mr and Mrs. K Norbert purchased a studio apartment in Balsall Heath in November 2001. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Balsall Heath with a long lease were in the region of £275,000. The average amount of ground rent was £45 invoiced yearly. The lease ended in 2095. Having 69 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.