The re-sale value of a leasehold property in Barnt Green depends on how long the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed well before the eighty year threshold. Current legislation entitles Barnt Green qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 obtain 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 procuring 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.
In recent months Jason, started to get close to the 80-year mark with the lease on his one bedroom flat in Barnt Green. Having purchased his property two decades ago, the length of the lease was of little significance. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Jason arranged for a lease extension at the eleventh hour in April. Jason and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If the lease had descended below eighty years, the price would have escalated by at least £950.
Last Summer we were called by Mr and Mrs. Y Evans , who acquired a one bedroom flat in Barnt Green in June 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Barnt Green with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 collected monthly. The lease finished on 20 May 2103. Taking into account 78 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Ms Rachel Wilson was assigned a lease of a purpose-built flat in Barnt Green in July 1998. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar premises in Barnt Green with a long lease were worth £267,600. The average ground rent payable was £65 collected annually. The lease ended on 20 May 2092. Having 67 years remaining we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus expenses.