When it comes to long leasehold premises in Balsall Heath, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years remaining. Residents in Balsall Heath with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has below eighty years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Balsall Heath with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Jackson owned a studio apartment in Balsall Heath being sold with a lease of a little over sixty years remaining. Jackson informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Autumn we were e-mailed by Mr U Lewis , who completed a newly refurbished flat in Balsall Heath in October 2002. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical properties in Balsall Heath with an extended lease were in the region of £295,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 27 February 2100. Considering the 75 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Dr Max Miller bought a purpose-built flat in Balsall Heath in March 2007. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Balsall Heath with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 billed quarterly. The lease elapsed in 2089. Considering the 64 years left we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.