Barnt Green leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Barnt Green will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Barnt Green with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Barnt Green can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 dealing with Barnt Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Austin was the the leasehold proprietor of a conversion apartment in Barnt Green on the market with a lease of just over 61 years outstanding. Austin on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were phoned by Ms K Collins , who owned a studio flat in Barnt Green in September 1997. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Barnt Green with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out in 2096. Taking into account 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
Last Winter we were called by Mr and Mrs. D Gray , who bought a basement apartment in Barnt Green in June 2012. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Barnt Green with a long lease were worth £225,800. The average amount of ground rent was £60 billed every twelve months. The lease finished on 9 May 2085. Given that there were 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of costs.