Unfortunately that a Balsall Heath residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Balsall Heath property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Balsall Heath will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Lease extensions in Balsall Heath can be a difficult process. We recommend you secure guidance from a lawyer 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 in-depth market knowledge dealing with Balsall Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the landlord of her one bedroom flat in Balsall Heath, Georgina initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction was finalised in August 2009. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were called by Mr Finley Bonnet who, having owned a studio flat in Balsall Heath in June 2006. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable premises in Balsall Heath with an extended lease were worth £191,400. The average ground rent payable was £55 invoiced monthly. The lease lapsed on 1 February 2080. Having 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus expenses.
Dr L King took over the lease of a studio apartment in Balsall Heath in April 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Balsall Heath with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed annually. The lease ended on 14 November 2100. Taking into account 74 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.