Balsall Heath leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under eighty 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. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Balsall Heath will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Balsall Heath leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jackson, started to get close to the 80-year mark with the lease on his basement flat in Balsall Heath. Having bought his property 19 years ago, the unexpired term was of no significance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Jackson arranged for a lease extension just in the nick of time in March. Jackson and the freeholder eventually settled on an amount of £5,000 . If the lease had slid lower than 80 years, the figure would have become more exhorbitant by at least £1,125.
Last Summer we were approach by Mrs Anna González , who completed a garden apartment in Balsall Heath in January 2007. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Balsall Heath with a long lease were valued about £260,200. The average amount of ground rent was £65 collected monthly. The lease expired on 15 March 2092. Taking into account 66 years as a residual term we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.
In 2010 we were approached by Mr and Mrs. E Moore who, having purchased a studio flat in Balsall Heath in February 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar residencies in Balsall Heath with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired in 2081. Taking into account 55 years remaining we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus legals.