The nearer a residential lease in Balsall Heath nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Balsall Heath will qualify for this right; however a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Balsall Heath with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Balsall Heath can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
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 procuring 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.
Last October Edward, started to get close to the eighty-year threshold with the lease on his ground floor flat in Balsall Heath. Having purchased his property 18 years ago, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Edward extended the lease at the eleventh hour last July. Edward and the freeholder subsequently settled on sum of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,150.
In 2010 we were contacted by Dr P Collins who, having owned a ground floor apartment in Balsall Heath in January 2009. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Balsall Heath with 100 year plus lease were valued about £206,200. The average ground rent payable was £55 invoiced per annum. The lease terminated in 2081. Having 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
Mr and Mrs. H Dupont purchased a studio apartment in Balsall Heath in September 2005. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable properties in Balsall Heath with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2101. Given that there were 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.